In May 2011,the average price of gasoline in the United States was $3.76 per gallon,and consumers purchased nearly 5 percent less gasoline than they had during May 2010,when the average price of gasoline was $2.79 per gallon.Based on these figures,from May 2010 to May 2011,the demand for gasoline was
A)elastic.
B)inelastic.
C)unit elastic.
D)perfectly elastic.

Question

Quizplus · Accepted Answer

The demand for gasoline is inelastic because the percentage decrease in quantity demanded (5%) is less than the percentage increase in price (approximately 34.8%). Inelastic demand indicates that consumers are not very responsive to price changes.

In May 2011,the Average Price of Gasoline in the United