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Determinants of Price Elasticity of Demand
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Determinants of Price Elasticity of Demand
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4. Elasticity / Determinants of Price Elasticity of Demand / Problem 7
Problem 7
In the context of gasoline, why is demand more elastic in the long run than in the short run?
A
Gasoline prices are more stable in the long run.
B
Consumers have more time to find alternatives or change their consumption habits.
C
Consumers are less dependent on gasoline in the short run.
D
The supply of gasoline increases in the long run.
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