If We Observe That an Increase in the Amount of Vehicle

question 46

Multiple Choice

If we observe that an increase in the amount of vehicle miles traveled rises after the price of gasoline rises, then we can conclude that

• A) the amount of vehicle miles traveled and the price of gasoline are positively correlated.
• B) the amount of vehicle miles traveled and the price of gasoline are negatively correlated.
• C) the amount of vehicle miles traveled causes the price of gasoline to go up.
• D) the price of gasoline causes the amount of vehicle miles traveled to go up.
• E) a negative causation occurs between the amount of vehicle miles traveled and the price of gasoline

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Definitions:

Profit

The financial gain that results when the revenues generated from business activities exceed the expenses, taxes, and costs incurred.

Competitive Market

A market structure characterized by many buyers and sellers, where all entities have little to no power to influence prices or market conditions.

Transaction Costs

Transaction costs are expenses incurred when buying or selling goods or services, including the costs of searching for information, negotiations, and enforcement of contracts.

Spread

The difference between two values, such as the bid and ask prices in financial markets, or the range in statistical data.