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

Question

Quizplus · Accepted Answer

The unit of measurement does not affect the numerical value of elasticity. Therefore, the price elasticity of demand would still be 0.67 if the price of gasoline is measured in cents instead of dollars.

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