Suppose the Quantity of Gasoline Is Measured in Gallons and the Price

question 161

Multiple Choice

Suppose the quantity of gasoline is measured in gallons and the price of gasoline is measured in dollars. The price elasticity of demand is 0.67. If the price of gasoline was now measured in cents rather than dollars, the price elasticity of demand would now be

• A) 0.0067.
• B) 0.67.
• C) 6.7.
• D) 67.0.

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