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Answer to Question #47082 in Microeconomics for Felisia
Question #47082
Jack and Jill went up the hill to gas station that does not display the prices. Jack says , " Give me 10 worth of gas." Jill says, " Give me 10 gallons of gas." What are the price elasticities of demand for gasoline of Jack and of Jill ? Explain
Expert's answer
Jack has inelastic demand, because the price isimportant for him and he will buy less gas, if the price increase. But
Jill has elastic demand, because the price is not important for her and she will buy the same quantity of gas, if the price change.
Jill has elastic demand, because the price is not important for her and she will buy the same quantity of gas, if the price change.
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