Final answer:
The demand for gasoline is relatively inelastic because it is a necessity with few immediate alternatives, meaning that consumers will often continue to purchase it even if prices rise.
Step-by-step explanation:
The demand for gasoline is not perfectly elastic or perfectly inelastic. It is generally considered to be relatively inelastic. This is because gasoline is a necessity for most people who drive; a change in price does not significantly alter the quantity demanded. For example, if your car's gas tank is on empty, you are likely to fill it up even if the price per gallon has gone up since you last checked, simply because you need the gasoline to keep driving, especially if there aren't viable alternatives like public transportation available.
An elastic demand indicates a high responsiveness to changes in price, where elasticity is greater than one. Inelastic demand indicates a low responsiveness to price changes, where elasticity is less than one. Gasoline's inelasticity suggests that a percentage increase in price will result in a smaller percentage reduction in quantity demanded, reflecting the consumer's limited flexibility or alternatives in the short term.