One reason why the demand for gasoline is inelastic is because
A) substitutes for gas abound.
B) substitutes for gas are hard to find.
C) gasoline is a luxury item.
D) people have a long time to shop around for automobiles that use less gas.
E) buses run on diesel fuel rather than gasoline.

Question

Quizplus · Accepted Answer

The demand for gasoline is inelastic because substitutes for gas are hard to find. Many people rely on their cars for transportation and do not have viable alternatives to gasoline. Additionally, people may be reluctant to switch to alternative fuels or modes of transportation due to high costs or inconvenience. Therefore, even if the price of gas increases, the demand does not decrease significantly because people still need to use their cars.

One Reason Why the Demand for Gasoline Is Inelastic Is