April 26, 2015

Homework Help: home economics

Posted by Lupe on Sunday, April 12, 2009 at 8:33pm.

Suppose that 200 gallons of gasoline are demanded at a particular price. If the price drops by 1 percent, the quantity demanded of gasoline increases to 200.5 gallon. which of the following statement is true?
a) The elasticity of demand is equal to 0.5
b) Demand is elastic
c) Demand is enelastic
d)Demand is unit-elastic.
e)Demand is perfectly inelastic.

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