A 10 percent increase in gasoline prices reduces gasoline consumption by about
a. 6 percent after one year and 2.5 percent after five years.
b. 2.5 percent after one year and 6 percent after five years.
c. 10 percent after one year and 20 percent after five years.
d. 0 percent after one year and 1 percent after five years.
b
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The price elasticity of demand is a measure of the extent to which the quantity demanded of a good changes when ________ and all other influences on buyers' plans remain the same
A) income changes B) the price of a related good changes C) the price of the good changes D) the demand alone changes E) both the demand and the supply simultaneously change
A decrease in the price of one good results in a parallel shift in the budget line.
Answer the following statement true (T) or false (F)
How is the concept of present value useful in deciding whether or not to undertake an investment project?
What will be an ideal response?
The marginal productivity principle has relevance only in a capitalist economy, and not in a socialist system
a. True b. False Indicate whether the statement is true or false