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Gnoma [55]
3 years ago
15

What is the relationship between price and the quantity of gasoline demanded

Business
1 answer:
Shkiper50 [21]3 years ago
7 0

Answer:

In the study, Espey examined 101 different studies and found that in the short-run (defined as 1 year or less), the average price-elasticity of demand for gasoline is -0.26. That is, a 10% hike in the price of gasoline lowers quantity demanded by 2.6%. In the long-run (defined as longer than 1 year), the price elasticity of demand is -0.58.

Explanation:

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