Homework Help is Here – Start Your Trial Now!
Business
Economics
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.

Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Elastic And Its Application
Section: Chapter Questions
Problem 8PA: The New York Times reported (Feb. 17, 1996) that subway ridership declined after a fare increase:...
See similar textbooks
icon
Related questions
Question
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.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: Applications, Strategies an…
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
Micro Economics For Today
Micro Economics For Today
Economics
ISBN:
9781337613064
Author:
Tucker, Irvin B.
Publisher:
Cengage,
Survey Of Economics
Survey Of Economics
Economics
ISBN:
9781337111522
Author:
Tucker, Irvin B.
Publisher:
Cengage,
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Exploring Economics
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
SEE MORE TEXTBOOKS