The short-run price elasticity of demand for gasoline is 0.5, and the long-run price elasticity of demand for gasoline is 1.1. Demand for gasoline is in the short run and in the long run. a elastic unitarily elastic
The short-run price elasticity of demand for gasoline is 0.5, and the long-run price elasticity of demand for gasoline is 1.1. Demand for gasoline is in the short run and in the long run. a elastic unitarily elastic
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The short-run price elasticity of demand for gasoline is
0.5, and the long-run price elasticity of demand for
gasoline is 1.1. Demand for gasoline is _______ in the short
run and in the long run.
a. elastic; unitarily elastic.
b. inelastic; unitarily inelastic.
c. elastic; inelastic.
d. inelastic; elastic.
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