Suppose that the price of gasoline increases 10% and the quantity of gasoline demanded in Calgary drops 5% per day.Demand for gasoline in Calgary is:
A) price-elastic.
B) price-inelastic.
C) price unit-elastic.
D) perfectly price-inelastic.

Question

Quizplus · Accepted Answer

The demand is price-inelastic because the percentage change in quantity demanded (5%) is less than the percentage change in price (10%).

Suppose That the Price of Gasoline Increases 10% and the Quantity