As gasoline prices increased throughout 2010 and into 2011,consumers began to explore alternatives to driving their cars and more people eventually ended up using public transportation.This exemplifies that for a specific product,the longer the time period involved,
A)the larger (in absolute value)the price elasticity of demand.
B)the smaller (in absolute value)the price elasticity of demand.
C)the closer the price elasticity of demand is to reaching a value of zero.
D)the more people come to rely on that product.

Question

Quizplus · Accepted Answer

The longer the time period involved, the more time consumers have to adjust their behavior and find alternatives to the product in question. This generally means that the price elasticity of demand becomes larger (in absolute value) as consumers become more responsive to changes in price. In the case of gasoline, as prices rose over a period of several years, more consumers began to explore alternatives like public transportation, which suggests that the demand for gasoline became more elastic over time.

As Gasoline Prices Increased Throughout 2010 and into 2011,consumers Began