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What is the relationship between price and the quantity of gasoline demanded
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What is the relationship between price and the quantity of gasoline demanded

User SuperJulietta
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Answer:

In the study, Espey examined 101 different studies and found that in the short-run (defined as 1 year or less), the average price-elasticity of demand for gasoline is -0.26. That is, a 10% hike in the price of gasoline lowers quantity demanded by 2.6%. In the long-run (defined as longer than 1 year), the price elasticity of demand is -0.58.

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User Ali Nem
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