Suppose the quantity of gasoline is measured in gallons and the price of gasoline is measured in dollars. The price elasticity of demand is 0.67. If the price of gasoline was now measured in cents rather than dollars, the price elasticity of demand would now be
A) 0.0067.
B) 0.67.
C) 6.7.
D) 67.0.

Question

Quizplus · Accepted Answer

Price elasticity of demand is a unitless measure, meaning it does not depend on the units in which price or quantity are measured. Therefore, changing the unit of price from dollars to cents does not affect the elasticity value.

Suppose the Quantity of Gasoline Is Measured in Gallons and the Price