To Determine Whether an Increase in the Price of Gasoline

question 18

Multiple Choice

To determine whether an increase in the price of gasoline results in a consumer spending a larger share of their expenditure on gasoline we need to know

• A) only how much money the consumer spends on gasoline before the price change
• B) only the change in the price of gasoline
• C) only the change in the price of gasoline as a percentage of the original price
• D) only the own price elasticity of demand for gasoline
• E) none of the above

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Definitions:

Statute of Frauds

A legal concept that requires certain types of contracts to be executed in writing and signed by the party to be charged.

Typed Agreement

A formal contract that has been created and recorded in written form, usually typewritten, to outline specific terms and conditions between parties.

Writing Requirement

The legal principle that certain contracts or agreements must be recorded in written form to be legally enforceable.

Statute of Frauds

A rule of law that mandates specific kinds of agreements must be documented and signed by the involved parties to be legally binding.