Answer to Question #275036 in Microeconomics for ivy jane

Question

two drivers johnson and Angela each driver up to a gas station ,before looking at the price each places an order johnson says I'd like 5 liters of gas, angela says I'd like 300 worth of gas ,what is each drivers price elasticity of demand

Answer 1

Johnson is price inelastic while Angela is price elastic. Johnson is not concerned with the price but the quantity that he needs to consume while Angela is planning to spend a fixed amount of income on the gas meaning if the price increases the quantity demanded decreases and vice versa.