The demand for gasoline in the short run is
A) elastic because people can easily switch to public transportation.
B) inelastic because there are very few good substitutes for gasoline.
C) perfectly inelastic because people have no choice but to buy gasoline.
D) unit elastic because people tend to consume a stable amount of gasoline per period.
B
You might also like to view...
Refer to Table 5.4. If outcomes 1 and 2 are equally likely at Job A, then in absolute value
A) W = X = $10. B) W = X = $20. C) W = Y = $100. D) W = Y = $200. E) W = Y = $300.
If borrowers and lenders expect a higher rate of inflation,
a. nominal interest rates should decrease. b. nominal interest rates should remain constant. c. nominal interest rates should increase. d. real interest rates should increase.
Suppose that Mexico and Canada both peg their currencies to the U.S. dollar. The relationship between the Mexican peso and the Canadian dollar is best described as a(n):
A) indirect peg. B) fixed exchange rate system. C) currency union. D) free trade area.
Refer to the above diagram, in which S1 and D1 represent the original supply and demand curves and S2 and D2 the new curves. In this market the indicated shift in supply may have been caused by:
A. this product becoming less fashionable. B. an increase in the wages paid to workers producing this good. C. an increase in consumer incomes. D. the development of more efficient machinery for producing this good.