Would the elasticity of demand likely be greater or less

Reference no: EM131020532

The Energy Information Administration estimated that in 2012 American consumers spent 4 percent of their incomes on gasoline. Would the elasticity of demand likely be greater or less if consumers had spent 8 percent of their incomes on gasoline? Briefly explain. Source: Steve Everly, "‘Get Ready for a Roller Coaster' as Gas Prices Swing Wildly," Kansas City Star, April 21, 2013.

Reference no: EM131020532

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