Question

Reasons why petrol is considered an example of relatively inelastic demand

Answer 1

When there is a small change in demand when prices change a lot, the product is said to be inelastic. The most famous example of relatively inelastic demand is that for gasoline. ... This is because there are very few good substitutes for gasoline and consumers are still willing to buy it even at relatively high prices.

Answer 2

Answer:

Your demand for gasoline is relatively elastic. ... You need gasoline, and therefore your demand for it is relatively inelastic. If there are few substitutes for a product, the demand for it is relatively inelastic. That means that the price can change, but the quantity demanded doesn't change very much in response.