Answer to Question #164843 in Microeconomics for Lutuf Ali

Question

Why would demand for natural gas be more inelastic in the short run than in the long run?

Answer 1

The demand for natural gas is more inelastic in the short run than in the long run because in the short run consumers have to buy the natural gas to heat they homes (in winter). In the long run, the weather conditions might change (the temperature can increase) and the consumers can switch on home heating systems that use propane, wood or electricity.