An individual with a highly elastic demand for gasoline will:
A) cut consumption more than an individual with a highly inelastic demand when price goes up.
B) cut consumption less than an individual with a highly inelastic demand when price goes up.
C) refuse to cut consumption for any reason.
D) stop using gasoline entirely if a tax is imposed.

Question

Quizplus · Accepted Answer

An individual with highly elastic demand is more responsive to price changes, so they will reduce their consumption more than someone with inelastic demand when prices increase.

An Individual with a Highly Elastic Demand for Gasoline Will