Presentation on demand and supply

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

$10

A

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

$10

A

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

$10

A

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

$10

A

D

0

300

500

Quantity of gasoline

Demand shocks with inelastic supply
S1 (Short run)

Price of Houses

P2 P3 P1

S2 (Long run)

D2 D1
Number of housing units