1a. Consider demand for gasoline in Irvine. Would you would expect demand to be more elastic...

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Economics

1a. Consider demand for gasoline in Irvine. Would you wouldexpect demand to be more elastic in the short run or the longrun?
Group of answer choices
a. In short run, demand is more elastic
b. In long run, demand is more elastic
1b. Please explain your reasoning: (Select all that aretrue)
Group of answer choices
a. Because in the short run, prices change more frequently
b. Because in the long run, people can switch to greenertransportation
c. Because in the short run, more gasoline can be produced
d. Because in the long run, prices will increase
2a.
Which of the following goods would you expects to have moreelastic demand?
Group of answer choices
a. Chewing gum
b. Cigarettes
2b. Why? (Select all that are true)
Group of answer choices
a. Because chewing gum is comparable to more goods, that peoplecan use instead
b. Because cigarettes have negative health effects in the longterm
c. Because chewing gum has fewer regulations on itsproduction
d. Because cigarettes generally have a higher price

Answer & Explanation Solved by verified expert

4.0 Ratings (481 Votes)

1a Answer b Demand is more elastic in the longrun Elasticity of demand Ed is the ratio of change in QD to change in price If the ratio is more than 1 indicating the higher percentage change in QD compare to the percentage change See Answer

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