In the past few months, gasoline prices have skyrocketed. How much are consumers willing to pay?How elastic is the demand for gasoline?Let's find out!

STEP 1: FAMILIARIZE YOURSELF WITH THE GRAPHS

1. GAS PRICE:https://fred.stlouisfed.org/graph/?g=R1iIsiteClick on the line to display the gas price for a particular month.The gray bars represent recessions. https://fred.stlouisfed.org/graph/?g=R1iIsite

2. GALLONS OF GAS SOLD:https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=a103600001&f=mClick on the line in the graph to display the gallons sold. Or consult the data in the table below.

STEP 2:ANSWER THE FOLLOWING QUESTIONS.

1.What was the price of gasoline in MAR 2020?How many gallons were sold in MAR 2020?

2.What was the price of gas and gallons sold in MAR 2022?

3.Using the midpoint formula, what's the percentage change in price from MAR 2020 to MAR 2022?What's the percentage change in quantity?What is the elasticity?