6-1

Some Estimated Price Elasticities of Demand

Table :

TABLE 6-1 Some Estimated Price Elasticities of Demand

Good     

Price elasticity of demand

Inelastic demand

Gasoline (short-run)

0.09

Gasonline (long-run)

0.24

Airline travel (business)

0.80

Soda

0.80

College (in-state tuition)

0.87

Elastic demand

Housing

1.2

College (out-of-state tuition)

1.2

Airline travel (leisure)

1.5

Coke/Pepsi

3.3