question archive Suppose the price of gasoline increases 10%, and quantity demanded for gasoline in Orlando drops 5% per day
Suppose the price of gasoline increases 10%, and quantity demanded for gasoline in Orlando drops 5% per day
Subject:EconomicsPrice:2.88 Bought3
Suppose the price of gasoline increases 10%, and quantity demanded for gasoline in Orlando drops 5% per day. The price elasticity of demand for gasoline in Orlando is what?
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The answer is the price elasticity of demand is
The equation for price elasticity of demand is
.
Where Q is the quantity demanded, and P is the price.
Substituting values
