A slowdown in the production of oil causes the supply of gasoline to shift leftw

Question

A slowdown in the production of oil causes the supply of gasoline to shift leftward. If we observe very little reduction in quantity demanded following the increase in the price of gasoline, we can best conclude that the demand for gasoline is: elastic, so this is probably a long-term reaction on the part of consumers. inelastic, so this is probably a long-term reaction on the part of consumers. elastic, so this is probably a short-term reaction on the part of consumers. inelastic, so this is probably a short-term reaction on the part of consumers.

Explanation / Answer

The correct answer is option (D). The demand of gasoline is inelastic. It would show a short-term reaction on the part of consumer.

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