What is your best estimate of the elasticity of demand for gasoline? Is it inelastic or elastic? Explain what these terms mean. Estimate a number. Explain your reasoning underlying your estimate. Does it matter what time frame we are talking about? Based on your estimate, what would be the reduction in gas consumption if the price of gas rose from $3 to $3.30 per gallon? Respond to your classmates' estimates and reasoning.

Answer :

emaduet2012

Answer:

Gasoline percentage will fall by 4%.

Explanation:

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