Question

Two drivers—Brian and Crystal—each drive up to a gas station. Before looking at the price, each places an order. Brian says, "I'd like 10 gallons of gas." Crystal says, "I'd like $10 worth of gas."
Which of the following statements is correct? Check all that apply.

Brian's demand is perfectly inelastic.

Crystal's demand is perfectly elastic.

Crystal's demand is unit elastic.

Brian's demand is elastic.

Answer 1

Answer:

Brian's demand is perfectly inelastic.

Crystal's demand is unit elastic.

Explanation:

Given that

Brian said = 10 gallons of gas

where, Crystal says = $10 worth of gas

By seeing the above information, we concluded that the Brain's demand is perfectly inelastic as the demand of the gallons are fixed

And, the crystal demand is unitary elastic as the expenditure would remain unchanged or fixed

In addition, the perfectly inelastic is when elasticity is zero , and unitary elastic is when elasticity is equal to one