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vovikov84 [41]
3 years ago
7

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

to alternatives like public transportation. Therefore, the demand for gasoline
a. more elastic,
b. less elastic
Business
1 answer:
kicyunya [14]3 years ago
8 0

Answer: Option A

 

Explanation: In simple words, elasticity refers to the change in demand for a product due to change in its price.

If the price for the gasoline remains high in the long run then at one point substitution effect will come into play and consumers will shift their demand to the alternatives available.

However the product like gasoline will not show decrease in demand in the short run due to price as it more of an essential good to daily life.

Thus, the correct option is A.

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Swifty Corporation reported net income of $203000 for the year. During the year, accounts receivable increased by $15000, accoun
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Which goal incorporates most of the criteria required for a SMART goal?
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E. Zeenat plans to become a kindergarten teacher, she has a part-time job to help finance her education and plans to obtain her graduate degree in education in three years.

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8 0
3 years ago
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The ending retained earnings balance of the Taco Heaven restaurant chain increased by $2.6 million from the beginning of the yea
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From the question, we are informed that the ending retained earnings balance of the Taco Heaven restaurant chain increased by $2.6 million from the beginning of the year and that the company had declared a dividend of $1.5 million.

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3 years ago
If the price elasticity of demand for a product is -2.5, then a price cut from $2.00 to $1.80 will _________ the quantity demand
UkoKoshka [18]

If the price elasticity of demand for a product is -2.5, then a price cut from $2.00 to $1.80 will <u>increase </u>the quantity demanded by about  <u>2.5%</u>.

Price elasticity of call for is a measurement of the trade in the intake of a product on the subject of exchange in its price. Expressed mathematically, it's miles: charge Elasticity of demand = percent trade-in quantity Demanded / percentage trade-in rate.

we are saying a great is price elastic whilst growth in prices causes a bigger % fall in demand. e.g. if fee rises 20% and demand falls 50%, the PED = -2.five. Examples consist of Heinz soup.

Learn more about Price elasticity here: brainly.com/question/24384825

#SPJ4

6 0
1 year ago
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