Тестовое задание
Alvin, Simon, and Theodore are neighbors taking their families for a weekend trip to a mountain chalet an hour's drive from the city. They meet at the neighborhood gas station before starting their trip. Before seeing the gas prices, they discuss their plans. Alvin says he will definitely fill his tank because it is empty. Simon wants to buy as much gas as he can, spending 50 euro. Theodore says he still has some gas but would buy a few more liters if the price per liter is exactly 2 euro. Which of the following statements about their price elasticity of demand for gas is correct?
Alvin: His demand is perfectly inelastic (elasticity = 0) because he will fill his tank regardless of the price.
Simon: His demand is unitary elastic (elasticity = −1) because he will spend a fixed amount (50 euro) regardless of the price (percentage change in quantity demanded will exactly compensate for the percentage change in price to make it a fixed sum).
Theodore: His demand is perfectly elastic (elasticity = −\infty ) because he will only buy at 2 euro per liter, so his demand curve is at.