Question

9. When consumers face rising gasoline prices, they typically a. reduce their quantity demanded more in the long run than in the short run. b. reduce their quantity demanded more in the short run than in the long run. c. do not reduce their quantity demanded in the short run or the long run. d. increase their quantity demanded in the short run but reduce their quantity demanded in the long run.

Answer 1

a. reduce their quantity demanded more in the long run than in the short run.

Step-by-step explanation:

When consumers face rising gasoline prices, in the short run the quantity demanded doesn't change because they can't reduce the quantity as they won't have a substitute product because this will require, for example, changes in the vehicle to use a different fuel. However, in the long run the quantity demanded can be reduced because consumers can use substitutes, for example, by adapting the car to use a different fuel or by buying an electric car.