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Between taxes and market changes

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Sean's Shell service sells gasoline. At the current prices of approximately $2.50 per gallon, Suckin' Sam buys 100 gallons of fuel per month. If between taxes and market changes, the price of gas goes up to $5.00 per gallon, Suckin' Sam will only buy 90 gallons of fuel. What is his elasticity? Is it elastic or inelastic?

Reference no: EM131766873

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