The price elasticity of demand for gasoline

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Reference no: EM13796780

The price elasticity of demand for gasoline is 2.

a. In one or two sentences, explain the meaning of this number as if you were writing for someone who never took a course in economics.

b. What effect will a 10% reduction in the quantity of gasoline placed on the market have on the price of gasoline?

c. If the price of gasoline decreases by 3%, what will happen to the quantity of gasoline demanded?

Reference no: EM13796780

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