Question

Unseasonal weather led to unanticipated damage and maintenance at oil refineries that produce diesel fuel for boats, leading to a sharp shortage in supply. This caused the price of diesel fuel to increase from $3 per gallon to $5 per gallon. However, the quantity bought by people did not decrease significantly. In this case, demand for diesel fuel is

. The study of demand was done using
that involved computing volumes sold at different locations at the same time.

Answer 1

In this case, demand for diesel fuel is inelastic, as the quantity bought by people did not decrease significantly despite the increase in price. The study of demand was likely done using observational methods, which involved computing volumes sold at different locations at the same time.

Step-by-step explanation: