Multiple Choice
The price elasticity of demand for gasoline is 0.5 and the price elasticity of supply for gasoline is 1.1.If demand rises by 25%,the price of gasoline will
A) rise by 15.6%.
B) fall by 15.6%.
C) rise by 6.4%.
D) fall by 6.4%.
Correct Answer:
Verified
Correct Answer:
Verified
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