1. Suppose the price of gasoline rises from $1.89 to 2.17 per gallon, and in response the...

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1. Suppose the price of gasoline rises from $1.89 to 2.17 per gallon, and in response the quantity demanded decreases from 20,000 to 18,000 gallons.

a. What is the price elasticity of demand?

b. Is demand elastic or inelastic within this range?

c. What is the change in total revenue? Does this make sense?

Related Book For answer-question

Macroeconomics

ISBN: 978-0077307110

8th edition

Authors: David Colander

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Posted Date: Sep 04, 2018 12:36 AM

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1. Suppose the price of gasoline rises from $1.89 to 2.17 per gallon, and in response the...

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a Price Elasticity of Demand PED Q x P P Q Change in quantity demanded of gasoline Q 1... View the full answer

Macroeconomics

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