Question 9 Assume the price elasticity of demand (Ed) is 0.4 for gasoline in the long...
Question 9
Assume the price elasticity of demand (Ed) is 0.4 for gasoline in the long run. Some argue that we need a 50% reduction in gasoline consumption to be sustainable. What percentage price increase would reach that goal of 50% reduction in consumption?
Group of answer choices
125%
20%
0.4%
40%
50%
Homework Answers
PRICE ELASTICITY OF DEMAND=% CHANGE IN QUANTITY DEMANDED/% CHANGE IN PRICE
0.4=0.5/% CHANGE IN PRICE
% CHANGE IN PRICE=1.25 OR 125%
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Question 9
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