Which of the following statements about the consumers’ responses to rising gasoline prices is correct? *Consumers decrease their quantity demanded more in the long run than in the short run. *Consumers react to a 10% increase in price with about a 10% decrease in quantity demanded in both the short run and long run. *Consumers decrease their quantity demanded more in the short run than in the long run. *Because gasoline is a necessity, consumers do not decrease their quantity demanded in either the short run or the long run.
Which of the following statements about the consumers’ responses to rising gasoline prices is correct? *Consumers decrease their quantity demanded more in the long run than in the short run. *Consumers react to a 10% increase in price with about a 10% decrease in quantity demanded in both the short run and long run. *Consumers decrease their quantity demanded more in the short run than in the long run. *Because gasoline is a necessity, consumers do not decrease their quantity demanded in either the short run or the long run.
Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
Problem 7P
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Q5
Which of the following statements about the consumers’ responses to rising gasoline prices is correct?
*Consumers decrease their quantity demanded more in the long run than in the short run.
*Consumers react to a 10% increase in price with about a 10% decrease in quantity demanded in both the short run and long run.
*Consumers decrease their quantity demanded more in the short run than in the long run.
*Because gasoline is a necessity, consumers do not decrease their quantity demanded in either the short run or the long run.
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