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Consumer A consumes gasoline Rmb 200 yuan while consumer B purchases 20 liters of gasoline every time. What are the price elasticities of these two consumers?

Respuesta :

The price elasticity of these two buyers is different because consumer A only has 200 yuan and buys as much gasoline as can be with that money, while consumer B needs 20 liters regardless of its price.

The price elasticity of demand is a term that refers to the change in the quantity demanded of a good when its price changes. According to the above, the elasticity of the consumer A does vary because he only has 200 yuan to buy gasoline, so if the value of gasoline increases, he will be able to buy less gasoline.

On the other hand, consumer B does not have much interest in the value of gasoline because he needs 20 liters, that is, if the value increases or decreases, he will continue to buy the 20 liters regardless of its value.

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