Question

A large increase in gas prices creates a demand for cars with good gas mileage. It takes months for car companys to make these cars. How do you describe this market for cars?

A. Inelastic
B. Static

I said A.Inelastic because, its a short run and the firm cannot easily change its output level. Am I right?

Answer 1

yes:
http://www.businessdictionary.com/definition/inelastic-supply.html

Answer 2

I agree.

Answer 3

Thank you so much i just wanted to make sure im right before i make my final choice.

Answer 4

WRONG. The answer is ELASTIC

Answer 5

Nevermind. It is INELASTIC. My bad

Answer 6

Static