Which statement best explains why demand for gasoline is inelastic?
a. Gasoline prices are currently very high.
a. There is no substitute available
c. Gasoline uses a small portion of a person's income.
d. People have already cut back their driving to the minimum.
Ans: a. Gasoline prices are currently very high.
Economics
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Which of the following would be likely to change the relative efficiency of trucks versus trains in carrying freight?
A) Higher wages for truck drivers B) More powerful locomotives C) Tolls on interstate highways D) All of the above.
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The average cost curve for a natural monopoly is downward sloping where it intersects the market demand curve
a. True b. False
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