Suppose the US demand curve for gasoline shifts rightward, and the U. S. supply curve for gasoline remains unchanged. As a result, the price of gasoline increases by 9 percent, and the equilibrium quantity increases by 3 percent. Which of the following statements is true based on this information? Show Work
A) The price elasticity of demand for gasoline is roughly 0.33.
B) The price elasticity of demand for gasoline is roughly - 3.
C) The price elasticity of supply for gasoline is roughly 0.33.
D) The price elasticity of supply for gasoline is roughly 3.
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