The Cross Price Elasticity of Demand for Fuel with Respect

question 46

Multiple Choice

The cross price elasticity of demand for fuel with respect to the price of transport (e.g., automobile travel including insurance, etc.) has been estimated to be -0.48.If the price of transport falls by 10 percent in a period, how will that affect the demand for fuel in that period, all other things unchanged?

• A) The demand for fuel will increase by 4.8 percent.
• B) The demand for fuel will increase by 10 percent.
• C) The demand for fuel will not change because many people prefer to ride the subway.
• D) The demand for fuel will fall.

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Definitions:

Dimensional Approach

An approach in psychology that considers mental disorders along a continuum rather than distinct categories, emphasizing the range of severity and symptoms.

Diagnostic Criteria

The specific conditions and symptoms that must be met for a medical professional to diagnose a patient with a particular disorder.

Stigmatization

The action or process of discrediting individuals or groups by labeling them as socially unacceptable.

Rosenhan

Rosenhan was a psychologist known for his famous study "On Being Sane in Insane Places," which challenged the validity of psychiatric diagnoses by showing how healthy individuals could be admitted to psychiatric hospitals as patients.