Ask Question
20 November, 22:46

Two drivers-Kevin and Maria-each drive up to a gas station. Before looking at the price, each places an order. Kevin says, "I'd like 10 gallons of gas." Maria says, "I'd like $10 worth of gas."

Who's statement is elastic?

+2
Answers (1)
  1. 21 November, 01:00
    0
    Answer: Maria's statement is elastic

    Explanation: Only Maria's statement is elastic. Demand is said to be elastic when the computed elasticity is greater than 1. This indicates a high responsiveness to changes in price. Maria requires $10 worth of gas irrespective of the amount she'd be given for it. As a result her expenditure on gas is fixed and has no effect on expected revenue which shows that her elasticity is equal to one. A proportionate decrease in demand would cause a proportionate increase in price.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Two drivers-Kevin and Maria-each drive up to a gas station. Before looking at the price, each places an order. Kevin says, "I'd like 10 ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers