Consider the market for gasoline in a moderately large city.All else constant,it would be reasonable to conclude that the price elasticity demand for any individual gas station would be higher (more elastic)than the price elasticity of demand for gas in general.

Question

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The price elasticity of demand for any individual gas station would likely be higher (more elastic) than the price elasticity of demand for gasoline in general because there are likely many different gas stations in the city, each competing with one another for customers. This means that consumers have more options and can more easily switch to a different gas station if the price at one station is too high. In contrast, the overall price elasticity of demand for gasoline may be lower because, while consumers may be able to reduce their consumption somewhat in response to higher prices, they still typically need to purchase gasoline to get around and may not have many alternatives (e.g. public transit) available.

Consider the Market for Gasoline in a Moderately Large City