Explore BrainMass

Microeconomics - Elasticity and Equilibrium

If the own-price elasticity of demand for gasoline is -.2 and there is a 10% increase (+.10) in the price of gasoline, what will be the percentage change to the equilibrium demand for gasoline?

© BrainMass Inc. brainmass.com June 20, 2018, 9:14 am ad1c9bdddf

Solution Summary

A complete, neat and step-by-step solution is provided in four lines.