The Demand for Petrol in the Short Run Is

question 159

Multiple Choice

The demand for petrol in the short run is

• A) elastic because people can easily switch to public transportation.
• B) perfectly inelastic because people have no choice but to buy petrol.
• C) unit-elastic because people tend to consume a stable amount of petrol per period.
• D) inelastic because there are no good substitutes for petrol.

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Definitions:

Minimum Cash Balance

The lowest level of cash that a company or individual aims to maintain to meet operational and emergency needs.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period to manage liquidity and ensure financial stability.

Borrow

The act of receiving funds from another party under the agreement to return the principal amount along with interest.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, used to manage liquidity and ensure financial stability.