Celia buys 24 gallons of gasoline per month when the price is $2 per gallon,but only 16 gallons if the price rises to $3 per gallon.Within this range,her demand for gasoline is
A)unitary elastic
B)perfectly inelastic
C)perfectly elastic
D)inelastic
E)elastic

Question

Quizplus · Accepted Answer

The percentage change in quantity demanded is -33.33% and the percentage change in price is 50%. Since the percentage change in quantity demanded is less than the percentage change in price, the demand is inelastic.

Celia Buys 24 Gallons of Gasoline Per Month When the Price