If the Price of Gasoline Increases from $2

question 312

Multiple Choice

If the price of gasoline increases from $2.50 per gallon to $3.00 per gallon and the quantity demanded goes down from 120 million gallons per week to 115 million gallons per week, the absolute value of price elasticity of demand in that price range is approximately

• A) 0.23.
• B) 4.35.
• C) 0.93.
• D) 2.34.

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