Which of the Following Is True About the Demand for Gasoline

question 166

Multiple Choice

Which of the following is true about the demand for gasoline?

• A) It is probably more price elastic in the long run because price will increase by a higher percentage.
• B) It is probably more price elastic in the long run because it is easier to find substitutes for gasoline in the long run.
• C) It is probably more price elastic in the short run because price will increase by a higher percentage.
• D) It is probably more price elastic in the short run because it is easier to find substitutes for gasoline in the short run.

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Definitions:

Economies of Scale

Cost advantages that businesses obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Benefits Package

A collection of non-wage compensations provided to employees in addition to their salaries or wages. These can include health insurance, pension plans, and vacation time.

Mandatory Benefits

Compulsory employment advantages prescribed by law that an employer must provide to employees, such as social security, workers' compensation, and leave entitlements.

Employment Assistance Programs

Workplace initiatives designed to help employees deal with personal problems that might adversely affect their job performance, health, and well-being.