Asked by
Ladechaz Hernandez
on Dec 11, 2024Verified
Holding all other forces constant, when the price of gasoline rises, the number of gallons of gasoline demanded would fall substantially over a ten-year period because
A) buyers tend to be much less sensitive to a change in price when given more time to react.
B) buyers tend to be much more sensitive to a change in price when given more time to react.
C) buyers will have substantially more income over a ten-year period.
D) the quantity supplied of gasoline increases very little in response to an increase in the price of gasoline.
Sensitive
Pertaining to something that requires careful handling due to its potential to cause a reaction or damage under certain conditions.
Ten-Year Period
A duration of ten years used as a measurement of time for planning, analysis, or investment purposes.
- Identify the distinctions between short-term and long-term demand elasticity.
Verified Answer
FT
Learning Objectives
- Identify the distinctions between short-term and long-term demand elasticity.
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