Last September, the price of gasoline in Chattanooga was $2 a gallon, and consumers bought 1 million

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Last September, the price of gasoline in Chattanooga was $2 a gallon, and consumers bought 1 million gallons. Suppose the elasticity of demand in September at a price of $2 was -0.5, and that the demand function for gasoline that month was linear. What was that demand function? At what price does consumers' total expenditure on gasoline reach its largest level?
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Microeconomics

ISBN: 978-1118572276

5th edition

Authors: David Besanko, Ronald Braeutigam

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