Two drivers--Tom and Jerry--each drive up to a gas station. Before looking at the price, each places an order. Tom says, "I'd like 10 gallons of gas." Jerry says, "I'd like $10 worth of gas." What is each driver's price elasticity of demand? A. Tom and Jerry both have elastic demand. B. Tom has elastic demand while Jerry has inelastic demand. C. Tom has inelastic demand while Jerry has elastic demand. D. Tom and Jerry both have inelastic demand.
Two drivers--Tom and Jerry--each drive up to a gas station. Before looking at the price, each places an order. Tom says, "I'd like 10 gallons of gas." Jerry says, "I'd like $10 worth of gas." What is each driver's price elasticity of demand? A. Tom and Jerry both have elastic demand. B. Tom has elastic demand while Jerry has inelastic demand. C. Tom has inelastic demand while Jerry has elastic demand. D. Tom and Jerry both have inelastic demand.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Elastic And Its Application
Section: Chapter Questions
Problem 9PA
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Question
Two drivers--Tom and Jerry--each drive up to a gas station. Before looking at the price, each places an order. Tom says, "I'd like 10 gallons of gas." Jerry says, "I'd like $10 worth of gas." What is each driver's price elasticity of demand ?
A. |
Tom and Jerry both have elastic demand.
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|
B. |
Tom has elastic demand while Jerry has
|
|
C. |
Tom has inelastic demand while Jerry has elastic demand.
|
|
D. |
Tom and Jerry both have inelastic demand.
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