If the price of gasoline is relatively high for a long time, consumers are more likely to buy fuel-efficient cars or switch to a

Question

vesna_86 [32]

3 years ago

15

If the price of gasoline is relatively high for a long time, consumers are more likely to buy fuel-efficient cars or switch to a

lternatives like public transportation. Therefore, the demand for gasoline is_____________.

Business

1 answer:

MissTica · Answer 1 · 2021-12-03T22:51:46+03:00

Answer:

More elastic

Explanation:

The options to this question wasn't provided. The full question can be found here: https://www.chegg.com/homework-help/questions-and-answers/price-gasoline-relatively-high-long-time-consumers-likely-buy-fuel-efficient-cars-switch-a-q14245431

The elasticity of demand measures the degree of responsiveness of quantity demanded to changes in price.

Demand is elastic when a change in price has a greater effect on the quantity demanded.

In the above question, a rise in price of gasoline would lead to a decrease in its demand, this indicates that the demand for gasoline is elastic.

I hope my answer helps you.