Asked by Chyniquia Johnson on Jun 04, 2024
Verified
In the short run,the demand for gasoline today is
A) unit elastic.
B) very inelastic.
C) very elastic.
Demand for Gasoline
The consumer's desire and ability to purchase gasoline at various price points.
Unit Elastic
A situation in economics where a change in the price of a good or service results in a proportional change in the quantity demanded or supplied.
Very Inelastic
Describes a situation where the demand or supply for a good or service is minimally responsive to changes in price.
- Familiarize oneself with the elasticity principles of demand and supply.
- Examine the correlation between alterations in price, consumer demand, and the consumption patterns of various goods.
Verified Answer
ZK
Zybrea KnightJun 07, 2024
Final Answer :
B
Explanation :
In the short run, it can be assumed that consumers cannot easily adjust their consumption of gasoline. This means that even if the price of gasoline increases, consumers will still have to purchase a similar amount of gasoline for their daily needs such as commuting or running errands. Therefore, the demand for gasoline today is very inelastic, as consumers will still continue to purchase a similar quantity of gasoline regardless of changes in price.
Learning Objectives
- Familiarize oneself with the elasticity principles of demand and supply.
- Examine the correlation between alterations in price, consumer demand, and the consumption patterns of various goods.