A service station owner in Staten Island, New York, was worried that raising the price of gasoline would cause the quantity de

Question

3 years ago

10

A service station owner in Staten Island, New York, was worried that raising the price of gasoline would cause the quantity de

manded to fall by so much that he would be in a worse situation than if he did not raise the price. If raising the price of gasoline would cause the owner to receive less total revenue from the sale of gasoline, the demand for gasoline is __________ .

Business

1 answer:

lara31 [8.8K] · Answer 1 · 2022-02-01T15:09:15+03:00

Answer:

The demand for gasoline is elastic .

Explanation:

The elastic demand which is also termed as the price elasticity of demand, according to this concept the demand for a good is sensitive to changes in the price of goods, that means (according to this question ) if the prices of gasoline are increased by the service station owner, than the demand for gasoline would decrease . Here the demand would change by same percentage , that price would change.

A service station owner in Staten​ Island, New​ York, was worried that raising the price of gasoline would cause the quantity de

A service station owner in Staten Island, New York, was worried that raising the price of gasoline would cause the quantity de