If a 30 Percent Decline in the Price of Gasoline

question 172

Multiple Choice

If a 30 percent decline in the price of gasoline leads to a 15 percent rise in expenditures on gasoline, the price elasticity of demand for gasoline in this range must be

• A) 2.
• B) elastic.
• C) 0.5.
• D) inelastic.

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