Suppose the price of gasoline rises from $1.89 to $2.17 per gallon

Question
Suppose the price of gasoline rises from $1.89 to $2.17 per gallon, and in response the quantity demanded decreases from 20,000 to 18,000 gallons.

a. What is the price elasticity of demand?

b. Is demand elastic or inelastic within this range?

c. What is the change in total revenue? Does this make sense?

Originally posted 2017-02-17 05:55:16. Republished by Blog Post Promoter