As the price of gasoline ranges from 300 to over 400 a gallo

As the price of gasoline ranges from $3.00 to over $4.00 a gallon in a year, the amount of gasoline bought remains about the same; does this mean that gasoline is an exception to the law of demand or is there some better explanation?

Solution

Demand of product depends on various attributes like taste, preferences, technology available while price of product is determined according to demand supply equilibrium. Gasoline has various applications like industrial use, domestic use. Since the demand for product does not vary much due to capacity constraint from consumer side, demand curve is relatively inelastic. So with change in price quantity demand does not changes a lot.