Changes in Quantity Demanded (Short run)
Price of
Gasoline
In short run the elasticity of traffic
volume is 0.10 i.e. price increase has
lesser impact on traffic volume
$20
B
A
$10
D
0
450
500
Traffic Volume
Changes in Quantity Demanded (long-run)
Price of
Gasoline
In long run the elasticity of traffic
volume is 0.30 i.e. price increase has
greater impact on traffic volume
$20
B
A
$10
D
0
350
500
Traffic Volume
Changes in Quantity Demanded (Short-run)
Price of
Gasoline
In short run the elasticity of fuel
efficiency is 0.15 i.e. price increase has
lesser impact on fuel efficiency
$20
B
A
$10
D
0
425
500
Quantity of gasoline
Changes in Quantity Demanded (long run)
Price of
Gasoline
In long run the elasticity of fuel
efficiency is 0.40 i.e. price increase has
greater impact on fuel efficiency
$20
B
A
$10
D
0
300
500
Quantity of gasoline
Demand shocks with inelastic supply
Price of
Houses
S1 (Short run)
P2
S2 (Long run)
P3
P1
D2
D1
Number of housing units