If gasoline prices rise by 20% and quantity demanded falls by 5%, then the price elasticity of demand for gasoline is:

A) inelastic.
B) elastic.
C) unit elastic.
D) perfectly inelastic.


A

Economics

You might also like to view...

If the income from investments abroad and net transfer payments are negligible, the current account becomes equivalent to a country's net exports

Indicate whether the statement is true or false

Economics

Suppose that the annual dividend per share of stock is $4.40 and the closing price of the stock is $82.50, the yield of the stock would be

A. 13.3% B. 5.3% C. 23.6% D. 10.7%

Economics

The consensus reached in the late 1990s was that from the 1980s onward the Fed had been

A) quicker to stimulate or restrain the economy when its output fell short of or exceeded its natural level. B) quicker to stimulate the economy when output fell short of the natural level, but slower to do so when output exceeded the natural level. C) slower to stimulate the economy when output fell short of the natural level, but quicker to do so when output exceeded its natural level. D) slower to stimulate or restrain the economy when its output fell short of or exceeded its natural level.

Economics

An increase in the price level, other things remaining the same, may be expected to result in ____ the consumption function

a. a downward shift of b. a movement along c. an upward shift in d. no effect on

Economics