A service station owner in Staten Island, New York, was worried that raising the price of gasoline would cause the quantity demanded to fall by so much that he would be in a worse situation than if he did not raise the price
If raising the price of gasoline would cause the owner to receive less total revenue from the sale of gasoline, the demand for gasoline is
A) inelastic. B) elastic. C) unit elastic. D) perfectly inelastic.
B
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The market outcome in a duopoly with homogeneous products is similar to that in ________
A) a perfectly competitive market B) a monopolistically competitive market C) a monopoly D) an oligopoly with differentiated products
When a cartel breaks down and its members start cheating, the behavior in the industry becomes a
A) noncooperative game. B) zero-sum game. C) high stakes game. D) positive sum game.ax
Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the short run would be:
A. P3 and Y1. B. P2 and Y1. C. P2 and Y3. D. P1 and Y2.
A decrease in taxes would cause:
A. the dynamic aggregate demand curve to shift to the right. B. the dynamic aggregate demand curve to shift to the left. C. a movement up and along the existing dynamic aggregate demand curve. D. a movement down and along the existing dynamic aggregate demand curve.