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The price elasticity of demand for petrol is generally considered to be inelastic. Which would be a good reason why petrol is inelastic in the
The price elasticity of demand for petrol is generally considered to be inelastic. Which would be a good reason why petrol is inelastic in the short run?
[1] It does not have a lot of good substitutes.
[2] It is relatively inexpensive as a portion of one's total income.
[3] It takes consumers a while to adjust to a petrol price change.
[4] Firms can sell a lot of petrol at today's prices
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