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he U.S. Energy Information Administration estimatos that the price elasticity of demand for gasoline in the United States is -0.02 in the short run ource: Michael Morris, "Gasoline Prices Tend to Have Little Effect on Demand for Car Travel," ela gov, revised December 17, 2014. If the estimate is accurate, a 50 % increase in the price of gasoline would be required to reduce the quantity of gasoline demanded by 1 percent. (Enter your response as a whole number) Would you expect that the price elasticity of demand for gasoline in the long run is larger or smaller (in absolute value) than -0.027 price elasticity of demand for gasoline is A. more price inelastic in the long run than in the short run because in the short run more substitutes for gasoline may become available. B. equally price inelastic in both the short and long run as there are not many substitutes for gasoline. more price elastic in the long run than in the short run because in the long run more substitutes for gasoline may become available is price elastic in both the short and long run as many substitutes for gasoline exist.

he U.S. Energy Information Administration estimatos that the price elasticity of demand for gasoline in the United States is -0.02 in the short run ource: Michael Morris, "Gasoline Prices Tend to Have Little Effect on Demand for Car Travel," ela gov, revised December 17, 2014. If the estimate is accurate, a 50 % increase in the price of gasoline would be required to reduce the quantity of gasoline demanded by 1 percent. (Enter your response as a whole number) Would you expect that the price elasticity of demand for gasoline in the long run is larger or smaller (in absolute value) than -0.027 price elasticity of demand for gasoline is A. more price inelastic in the long run than in the short run because in the short run more substitutes for gasoline may become available. B. equally price inelastic in both the short and long run as there are not many substitutes for gasoline. more price elastic in the long run than in the short run because in the long run more substitutes for gasoline may become available is price elastic in both the short and long run as many substitutes for gasoline exist.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The U.S. Energy Information Administration estimatos that the prioe elasticity of demand for gasoline in the United States is -0.02 in the short run PonEU O Source: Michael Morris, "Gasoline Prices Tend to Have Little Effect on Demand for Car Travel," ela gov, revised December 17, 2014. a. If the estimate is accurate, a 50 % increase in the price of gasoline would be required to reduce the quantity of gasoline demanded by 1 percent. (Enter your response as a whole number) D. Would you expect that the price elasticity of demand for gasoline in the long run is larger or smaller (in absolute value) than -0.027 he price elasticity of demand for gasoline is DA. more price inelastic in the long run than in the short run because in the short run more substitutes for gasoline may become available. B. equally price inetastic in both the short and long run as there are not many substitutes for gasoline. C. more price elastic in the long run than in the short run because in the long run more substitutes for gasoline may become available. D. is price elastic in both the short and long run as many substitutes for gasoline exist.
Transcribed Image Text:The U.S. Energy Information Administration estimatos that the prioe elasticity of demand for gasoline in the United States is -0.02 in the short run PonEU O Source: Michael Morris, "Gasoline Prices Tend to Have Little Effect on Demand for Car Travel," ela gov, revised December 17, 2014. a. If the estimate is accurate, a 50 % increase in the price of gasoline would be required to reduce the quantity of gasoline demanded by 1 percent. (Enter your response as a whole number) D. Would you expect that the price elasticity of demand for gasoline in the long run is larger or smaller (in absolute value) than -0.027 he price elasticity of demand for gasoline is DA. more price inelastic in the long run than in the short run because in the short run more substitutes for gasoline may become available. B. equally price inetastic in both the short and long run as there are not many substitutes for gasoline. C. more price elastic in the long run than in the short run because in the long run more substitutes for gasoline may become available. D. is price elastic in both the short and long run as many substitutes for gasoline exist.
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