1.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?

1.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?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 2CQQ: The price of a good rises from 8 to 12, and the quantity demanded falls from 110 to 90 units....

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1.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?

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