Question

Two drivers—Sam and Teresa—each drive up to a gas station. Before looking at the price, each places an order. Sam says, "I'd like 10 gallons of gas." Teresa says, "I'd like $10 worth of gas." Which of the following statements is correct? Check all that apply. Sam's demand is perfectly inelastic. Teresa's demand is unit elastic. Teresa's demand is perfectly inelastic. Sam's demand is elastic.

Answer 1

The answer is Sam's demand is perfectly inelastic.

Step-by-step explanation:

Price elasticity of demand (PED) is a measure of how much quantity of a good or a service demanded responds to a change in its price.

Sams requests for 10 gallons of gas irregardless of the price which shows his demand is perfectly inelastic.