Question

Compared to the short-run demand for oil, the demand for oil, in the long run, will tend to be ______ elastic.

A) More
B) Less
C) Equally
D) None of the above

Answer 1

Compared to the short-run demand for oil, the long-run demand tends to be more elastic, as consumers have more time to adapt to changes in prices by making long-term adjustments.

Step-by-step explanation:

Compared to the short-run demand for oil, the demand for oil, in the long run, will tend to be more elastic. This is because, in the short run, consumers may find it difficult to make significant changes in their energy consumption habits due to existing commitments, such as cars or household appliances that are not easily or cheaply replaced. In contrast, with time, consumers can adjust to price changes by purchasing more fuel-efficient vehicles or investing in energy-saving technologies, leading to a demand for oil that is much more sensitive to price in the long run.