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xenn [34]
3 years ago
11

Suppose the price of gasoline increases 10% and quantity of gasoline demanded in Orlando drops 5% per day. Demand for gasoline i

n Orlando is: price unit-elastic. price elastic. price inelastic. perfectly price inelastic.
Chemistry
1 answer:
grin007 [14]3 years ago
5 0

Answer:

The correct answer is;

Demand for gasoline in Orlando is price inelastic.

Explanation:

The elasticity is the degree of response to a change in price or quantity supplied to the the quantity demanded. An elastic demand responds positively to change in price, while an inelastic demand means that when there is a price increase, the quantity demanded remains the same and where there is a drop in price the quantity demanded remains constant.

If a small change in price results in a large change in demand then the good is said to be price elastic

In the question the price increases by 10% while the quantity demanded drops 5 % daily. Therefore it is price inelastic

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