The process involved in bringing oil to world markets can take years.Substitutes for oil-based products such as gasoline are limited.As a result
A)the supply of oil is very elastic and the demand for oil is very elastic over short periods of time.
B)the supply of oil is very inelastic and the demand for gasoline is inelastic over short periods of time.
C)the supply of oil and the demand for oil shift to the right over short periods of time.
D)the supply of oil and the demand for oil are both perfectly elastic over short periods of time.

Question

Quizplus · Accepted Answer

The process of bringing oil to world markets is lengthy, which means that the supply of oil is very inelastic, and it is not possible to quickly respond to changes in demand. Similarly, substitutes for oil-based products such as gasoline are limited, so the demand for gasoline is also inelastic in the short-term.

The Process Involved in Bringing Oil to World Markets Can