Question

ead the news​ clip, then answer the following question.Each of the gas stations mentioned in the news clip faces a demand that is​ _____.

Answer 1

Answer: d. highly elastic

Explanation:

Elasticity is a measure of the responsiveness of quantity demanded to a change in price. An elastic good for instance, will see its quantity demand drop if its price increases.

In the above scenario, when one gas station increases prices, less people demand their fuel. The reverse is true. This therefore means that the demand for both of their stations is highly elastic because them changing prices hugely affects the number of people that will come to patronise them.