Is it true or false that the demand for brand gasoline (like Wawa or Racetrack) is more elastic than the demand for gasoline in general?

The statement is true: the demand for brand gasoline, such as that from Wawa or Racetrack, is indeed more elastic than the demand for gasoline in general. Elasticity of demand measures how much the quantity demanded of a good responds to changes in its price.

Brand gasoline represents a narrower market segment compared to gasoline as a whole. When it comes to brand gasoline, consumers have more alternatives and substitutes available—such as choosing between different brands of gasoline, or even opting for non-brand competitors. Therefore, if prices for brand gasoline increase, consumers are more likely to switch to another brand or a different fuel option entirely, showing a stronger sensitivity to price changes.

On the other hand, gasoline in general tends to be a necessity for many consumers. The overall demand for gasoline is often less elastic because, regardless of brand, consumers still require some quantity of gasoline for daily activities like commuting. Therefore, even if the price increases, consumers may still need to buy gasoline, resulting in a smaller change in quantity demanded.

This distinction in elasticity reflects the level of substitutes available within the brand gasoline market compared to the broader gasoline market, making the demand for brand gasoline more elastic.