Question

Let’s take Demand for Cooking Gas
What will happen to cross elasticity and income elasticity?
What will happen to price elasticity?
Explain your Perspective ?​

Answer 1

Answer:

Gasoline is a relatively inelastic product, meaning changes in prices have little influence on demand. Price elasticity measures the responsiveness of demand to changes in price. Almost all price elasticities are negative: an increase in price leads to lower demand, and vice versa.