Final answer:
The increase in gas prices with little change in consumption suggests that Speedway gas has an inelastic demand, meaning it has a low price elasticity. Consumers continue to buy gas despite price increases because it's a necessity with few substitutes.
Step-by-step explanation:
The increase in gas prices with little change in demand for Speedway gas indicates that gasoline has an inelastic demand. In economic terms, inelastic demand refers to a situation where the quantity demanded by consumers does not change significantly when the price of the product changes. This phenomenon can be observed when the necessity of the good overrides the effect of a price change. Since gasoline is essential for daily commuting and there are limited substitutes, a price hike does not lead to a significant decrease in consumption, especially in areas lacking robust public transportation. Therefore, Speedway gas demonstrates characteristics of a good with a low price elasticity, which means that its demand does not vary greatly with changes in price. As an example, your decision to fill up your tank despite the 40 cents per gallon increase earlier that day highlights this inelastic nature of gasoline demand. Factors such as more fuel-efficient cars can shift the demand curve for gasoline, but in the short term, an immediate need for fuel often results in consumers paying higher prices without reducing consumption substantially.