Short-run elasticity of demand for gasoline


"The short-run elasticity of demand for gasoline is estimated to be about $15.00, but the long-run elasticity is about 0.9. Explain, based on the determinants of elasticity, why the short-run elasticity is so low (inelastic), but why elasticity is far higher (though still inelastic) in the long run."

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Macroeconomics: Short-run elasticity of demand for gasoline
Reference No:- TGS061539

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