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

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter20: Elasticity: Demand And Supply

Section: Chapter Questions

Problem 11E: The price elasticity of the demand for gasoline is -0.02. The price elasticity of demand for...

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Question

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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