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

Question

Quizplus · Accepted Answer

The demand for gasoline in Orlando is price inelastic because the percentage change in quantity demanded (5%) is less than the percentage change in price (10%). This indicates that consumers' demand for gasoline does not decrease proportionally with an increase in price, showing inelastic behavior.

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