Question

Two drivers, Walt and Jessie, each drive up to a gas station. Before looking at the price, each places an order. Walt says, “I’d like 8 gallons of gas.” Jessie says, “I’d like $8 worth of gas.” What is each driver’s price elasticity of demand?

Answer 1

Two drivers – Tom and Jerry – each drive up to a petrol station. Before looking at the price, each places an order. Tom says: “I’d like 10 litres of petrol.” Jerry says: “I’d like $10 of petrol.” What is each driver’s price elasticity of demand?

Answer 2

None