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Price Elasticity Assignment | Homework For You

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December 9th, 2019

Why the tepid response to higher gasoline prices?

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Homework For You

Most studies report that when U.S. gas prices rise by 10 percent, the quantity purchased falls by 1 to 2 percent. In September 2005, the retail gasoline price was $2.90 a gallon, about $1.00 higher than in September 2004, but purchases of gasoline fell by only 3.5 percent.

(1 point) Calculate the price elasticity of demand for gasoline implied by what most studies have found. Get Economics homework help today

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