Asked by
Randee Maiava
on Oct 26, 2024
Verified
Suppose the price of gasoline increases 10% and quantity of gasoline demanded in Orlando drops 5% per day.Demand for gasoline in Orlando is:
A) price elastic.
B) price inelastic.
C) price unit-elastic.
D) perfectly price inelastic.
Price Elasticity
The degree to which demand for a particular item changes in response to price adjustments.
Gasoline Demanded
The total amount of gasoline that consumers are willing to buy at a given price, typically influenced by factors such as price and personal income.
- Familiarize oneself with the concept and numerical computation of demand's price elasticity.
- Identify the differences between elastic, inelastic, and perfectly elastic demand.
Verified Answer
JV
Learning Objectives
- Familiarize oneself with the concept and numerical computation of demand's price elasticity.
- Identify the differences between elastic, inelastic, and perfectly elastic demand.