Which of the following statements about the consumers' responses to rising gasoline prices is correct?
a. Because gasoline is a necessity, consumers do not decrease their quantity demanded in either the short run or the long run.
b. Consumers react to a 10% increase in price with about a 10% decrease in quantity demanded in both the short run and long run.
c. Consumers decrease their quantity demanded more in the short run than in the long run.
d. Consumers decrease their quantity demanded more in the long run than in the short run.
d
You might also like to view...
According to the Bureau of Labor Statistics, if you voluntarily leave your job to search for another job, then you
A) are eligible for unemployment compensation. B) are classified as a job loser. C) are classified as unemployed. D) may not re-enter the labor force for six months.
A market will experience a ____ when the price is above equilibrium and a ____ when the price is below equilibrium.
A. shortage, shortage B. surplus, surplus C. shortage, surplus D. surplus, shortage
Exhibit 14-8 Aggregate demand and supply
?
In Exhibit 14-8, when aggregate demand shifts from AD4 to AD5, the economy experiences:
A. cost-push inflation. B. cost-pull inflation. C. demand-push inflation. D. demand-pull inflation.
Which of the following is not a factor of production?
A. Land B. Money C. Capital D. Labor