The demand for gasoline in the short run is
A)elastic because people can easily switch to public transportation.
B)perfectly inelastic because people have no choice but to buy gasoline.
C)unit elastic because people tend to consume a stable amount of gasoline per period.
D)inelastic because there are very few good substitutes for gasoline.

Question

Quizplus · Accepted Answer

In the short run, people have limited options to switch to substitutes or alternative modes of transportation, making the demand for gasoline relatively inelastic. Although there may be some long-run adjustments that could make the demand more elastic, in the short run, the demand for gasoline is relatively insensitive to changes in price.

The Demand for Gasoline in the Short Run Is