buyers tend to be much more sensitive to a change in price when given more time to react.
Over a ten-year period, buyers have more time to adjust their behavior and find alternatives to using gasoline. They may choose to use public transportation, carpool, or invest in more fuel-efficient vehicles. As a result, the demand for gasoline would fall substantially as buyers become more sensitive to the increase in price.
Holding all other forces constant, when the price of gasoline rises, the number of litres of gasoline demanded would fall substantially over a ten-year period because
buyers tend to be much less sensitive to a change in price when given more time to react.
buyers tend to be much more sensitive to a change in price when given more time to react.
buyers will have substantially more real income over a ten-year period.
the quantity supplied of gasoline increases very little in response to an increase in the price of gasoline.
2 points
1 answer
1 answer