Discuss the elasticity of demand for gasoline and how it seems to be changing with technology.

The elasticity of demand simply measures the responsiveness of the quantity demanded by changes in prices. The price elasticity of demand can be in five main forms;

• Perfectly elastic in demand
• Perfectly elastic demand
• Unit of elastic demand
• Relatively elastic demand for
• Relatively inelastic to demand.

Gasoline depicts a relatively inelastic demand, which means that a price change has very little effect on the quantity demanded. The oil is extracted from crude oil. Recent developments have led to the creation of more and more efficient and much more affordable machines. The dominance of monopolies and the gasoline industry has been relatively reduced, and due to the increased supply of gasoline, its elasticity is slowly shifting to relative elastic demand.