Gas Prices: Elastic or Inelastic

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  However, can you truly say that inelastic demand is ALWAYS better for a supplier? How do you feel about gas prices? Do you feel they are elastic or inelastic?

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  I think that the price in which gas would become elastic is at the $0.75 price to as much as $3, but beyond this it will become inelastic. 3. What would happen to revenues if prices were lowered when demand was inelastic?

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  67792 Price Elastic in the Short Run What products or services do you expect to be price elastic, price inelastic, or too close to call in the short run?

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• What is the price elasticity of demand and what in general determines the elasticity of demand?

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  Similarly, if a good is elastic, then a seller cannot try to raise prices to earn a higher revenue. If the good is unit elastic (ped = -1) then raising prices will not change the revenue. 2.

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