Suppose the U

question 25

Multiple Choice

Suppose the U.S. demand curve for gasoline shifts rightward, and the U.S. supply curve for gasoline remains unchanged. As a result, the price of gasoline increases by 9 percent, and the equilibrium quantity increases by 3 percent. Which of the following statements is true based on this information?

• A) The price elasticity of supply for gasoline is roughly 0.33.
• B) The price elasticity of supply for gasoline is roughly 3.
• C) The price elasticity of demand for gasoline is roughly 0.33.
• D) The price elasticity of demand for gasoline is roughly -3.

---

Definitions:

Inequities

Unfair, avoidable differences in treatment or opportunities across individuals or groups.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level in a given period.

Equilibrium Price

The cost at which the amount of products offered matches the amount of products requested.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price over a certain period of time.