he price elasticity of demand for cars in Georgia is 1.8, whereas the price elasticity of demand for cars in Kentucky is 0.3. In other words, demand in Georgia is and demand in Kentucky is .

In other words, demand in Georgia is elastic and the demand in Kentucky is inelastic.

Explanation:

The price elasticity of demand is used to measure how the quantity of goods and services demanded react to the changes in price.

We are told that the price elasticity of demand for cars in Georgia is 1.8. This means that the demand is price elastic which means that there was a larger Chang in the quantity demanded of cars due to the change in the price of cars. Elasticity of demand here is greater than 1, therefore it is elastic.

On the other hand, the price elasticity of demand for cars in Kentucky is 0.3. This mean that it is price inelastic as the change in price has a minimal effect on the quantity of cards that were demanded. Here, the price elasticity of demand is less than 1.

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