If the demand for gasoline becomes more elastic over time,

a. the demand curve will become flatter.

b. other things being equal, the equilibrium quantity of gasoline must fall.

c. the demand curve will shift out.

d. other things being equal, the equilibrium price of gasoline must fall.

Question

Quentin Duffy

Business

10 November, 19:51

If the demand for gasoline becomes more elastic over time,

a. the demand curve will become flatter.

b. other things being equal, the equilibrium quantity of gasoline must fall.

c. the demand curve will shift out.

d. other things being equal, the equilibrium price of gasoline must fall.

+3

Answers (1)

Know the Answer?

Farrell · Answer 1

a. the demand curve will become flatter

Explanation:

a. the demand curve will become flatter

This means it will become more price sensitive and increases and decreases in the gasoline price will generate a greater increase or decrease in the quantity demanded over time.

b and d without the precise formula for demand we can't be sure that the new elasticity will impact the current equilibrium. It could happen or it could not.

c. - the demand curve will flatter, it will change it shape, not the location.

If the demand for gasoline becomes more elastic over time,a. the demand curve will become flatter.b. other things being equal, the equilibrium quantity of gasoline must fall.c. the demand curve will shift out.d. other things being equal, the equilibrium price of gasoline must fall.

If the demand for gasoline becomes more elastic over time,

a. the demand curve will become flatter.

b. other things being equal, the equilibrium quantity of gasoline must fall.

c. the demand curve will shift out.

d. other things being equal, the equilibrium price of gasoline must fall.