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If the Quantity Demanded Is 5,000 Gallons at $3

Question 69

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If the quantity demanded is 5,000 gallons at $3.00 per gallon, the price elasticity of demand for gasoline is 0.5, and the price rises to $3.15 per gallon, how many gallons of gas will be sold at this higher price? (Use the conventional method, not the midpoint method, of calculating price elasticity of demand.)

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A rise from $3.00 to $3.15 is a 5% incre...

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