The demand for gasoline is more elastic in the long run than in the short run because
A)other prices are more likely to change in the long run.
B)incomes tend to rise over time.
C)people can buy new cars in the long run.
D)cars have become more expensive over time.

Question

Quizplus · Accepted Answer

In the long run, consumers have more flexibility and can make changes, such as buying more fuel-efficient cars or using alternative modes of transportation, which reduces the demand for gasoline. Fixed commitments, such as car leases or employment locations, can limit the ability of consumers to adjust in the short run, making the demand for gasoline less elastic. Other prices changing or incomes rising do not necessarily affect the elasticity of gasoline demand. The price of cars increasing over time may impact the demand for new cars but does not directly impact the elasticity of gasoline demand.

The Demand for Gasoline Is More Elastic in the Long