Mariposa Sanchez is a sales representative for Sherwin Williams and her territory includes an approximately 120-mile radius of her "home" retail store. Her customers are painting contractors and facility managers of office complexes, apartment buildings, hospitals, and other businesses that might have commercial painting needs. Mariposa uses her company vehicle and spends about five hours each day in her car visiting her customers and prospecting for new business. Since her territory is so large, Mariposa puts about 200 miles on her car each day, which consumes a lot of gasoline. She tries to be economical when choosing gas stations, but it doesn't really matter how much the gas costs, she pays the price. In this case, demand for gasoline is
A)inelastic.
B)elastic.
C)unitary.
D)variable.

Question

Quizplus · Accepted Answer

Mariposa has no choice but to consume gasoline to perform her job duties and it is a necessary expense. Therefore, demand for gasoline is likely to be inelastic as it does not change much with changes in price.

Mariposa Sanchez Is a Sales Representative for Sherwin Williams and Her