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1. i) Gasoline for cars has an inelastic response for its price elasticity of demand due to being necessary in many consumers everyday lives while

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1. i) Gasoline for cars has an inelastic response for its price elasticity of demand due to being necessary in many consumers everyday lives while having little to no substitutes. If firms innovated and brought additional substitutes for gasoline to the market, we would expect the price elasticity of demand response for gasoline to become more O inelastic O elastic O not able to tell O no change

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