1. Suppose the price of gasoline in July 2018 averaged $1.35 a gallon and 15 million gallons a day were
1. Suppose the price of gasoline in July 2018 averaged $1.35 a gallon and 15 million gallons a day were sold. In October 2018, the price averaged $2.15 a gallon and 14 million gallons were sold. If the demand for gasoline did not shift between these two months, use the midpoint formula to calculate the price elasticity of demand. Indicate whether demand was elastic or inelastic. 2. Suppose that at a price of $55,100 units were sold while at a price of $33,153 units were sold. Without calculating the price elasticity value, can you determine whether it is elastic, unit elastic, or inelastic? Explain your answer.
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