In the News: Americans Apply Brakes as Gas Price Soars U. drivers bought about 2.4 million fewer gallons of gasoline last week, compared to a year...

In the News: Americans Apply Brakes as Gas Price SoarsU.S. drivers bought about 2.4 million fewer gallons of gasoline last week, compared to a year ago. That’s a 3.6 percent drop in the volume of gasoline sold. Price appears to be the culprit. Faced with a 32 percent jump in gas prices since last year, consumers are cutting back on nonessential trips and using public transit more often.

Source: News reports, April 12-15, 2011.

What was the price elasticity of demand for gasoline?

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