In December 2014, the average price of gasoline in the United States was $2.50 per gallon and consumers bought 7 percent more gasoline than they had during April 2014, when the average price was $3.60 per gallon.Based on these figures, from April 2014 to December 2014, the demand for gasoline was
A)elastic.
B)inelastic.
C)unit elastic.
D)perfectly elastic.

Question

Quizplus · Accepted Answer

The decrease in price from $3.60 to $2.50 resulted in a 43% decrease in price, while the increase in quantity demanded was only 7%. This indicates that demand for gasoline is relatively inelastic.

In December 2014, the Average Price of Gasoline in the United