How do you feel about gas prices? Do you feel they are elastic or inelastic?© BrainMass Inc. brainmass.com June 4, 2020, 2:25 am ad1c9bdddf
GAS PRICES AND ELASTICITY
Quantity demanded refers to the amount of goods buyers are willing to buy at a given price. To come up with price decisions, sellers and producers make use of an economic tool, the price elasticity of demand, to determine whether any given change in price would significantly affect the demand. The seller or marketer needs to know how the consumers respond to a given change in price to determine whether the price decision would result to increase in revenue and consequently, a possible increase in income.
The solution describes feelings about gas prices and how they are elastic or inelastic.