Related to the Economics in Practice on Page 151: Suppose

question 259

Multiple Choice

Related to the Economics in Practice on page 151: Suppose you own a truck and use it to deliver merchandise to retailers and hire a driver to make such deliveries. At higher rates of speed the truck gets fewer miles per gallon of gas. Holding all else constant, as the price of gasoline continues to rise

• A) you will instruct your driver to drive faster.
• B) you will instruct your driver to drive slower.
• C) you will ask your driver to change their driving in any way.
• D) you will make more deliveries to cover the increasing cost of fuel.

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Definitions:

Trade Discount

A reduction in the listed price of a product or service, offered by sellers to buyers in the same trade or industry.

Purchase Price

The amount of money paid to buy goods or services.

Shipping Cost

Expenses associated with the transportation of goods from one place to another.

Net Sales

Total sales revenue minus returns, allowances for damaged or missing goods, and discounts.