a large increase in gas prices creates a demand for cars with good gas milage. It takes months for car companies to make these cars. How do you describe this market for cars

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Social Studies

Rodolfo Perkins

1 September, 10:03

a large increase in gas prices creates a demand for cars with good gas milage. It takes months for car companies to make these cars. How do you describe this market for cars

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Abdullah Bradley · Answer 1

A large increase in gas prices creates a demand for cars with good gas milage. It takes months for car companies to make these cars. This market for cars can be described as inelastic.

This happens when a change in price leads to a smaller percentage change in demand. It is inelastic because In the short-run it takes time for consumers to look for alternatives.