Question
Asked Oct 30, 2019
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If the price of gasoline rises, when is the price elasticity of demand likely to be the highest?
 
A.immediately after the price increases
B.one month after the price increase
C.three months after the price increase
D.one year after the price increase
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Expert Answer

Step 1

If the price of gasoline rises,  the price elasticity of demand is likely to be the highest one year after the increase in price as the price of gasoline rises. People will be able to adjust o...

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Economics

Measurements of elasticity

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