Question

Is the demand curve for gasoline in the United States elastic or inelastic? Always? At all prices? What conditions would make it change?

Answer 1

The demand curve for gasoline in the United State is inelastic in the short run. In the log run there will be many alternative source of fuel can be available like electric car, shale gas, solar powered cars etc. All these alternative or substitute will make the demand for the gasoline elastic in the long run.

Not at all price. if the price is low the demand will be inelastic if the price increase enough to make other fuel production profitable like above $60 a barrel, Shale gas become profitable and that make gasoline elastic.

Availability of alternate and substitute fuel, and time period make the demand elastic