Multiple Choice
The state of Texas recently saw a gasoline price increase of 5%, which brought about a fall in the quantity of gasoline purchased of 1%. The price elasticity of demand is equal to _____, and demand is described as _____.
A) 0.2; inelastic
B) 5; inelastic
C) 0.2; elastic
D) 5; elastic
Correct Answer:
Verified
Correct Answer:
Verified
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