Question

Use figure 3.4 to answer the following: if the cost of gasoline increased from $3.00 per gallon to $4.00 per gallon and the quantity demanded decreases from 12 gallons to 10 gallons, would the demand be elastic or inelastic?

Answer 1

I think the most appropriate answer would be "inelastic demand". As the demand doesn't decrease significantly high and the cost of gasoline doesn't increase significantly increase that high.

(Inelastic demand is the the demand of a product does not changes too much/vigorously, as compared to elastic demand.)

I hope it helped you!