If Gas Prices Suddenly Change from $2 a Gallon to $4

question 133

Multiple Choice

If gas prices suddenly change from $2 a gallon to $4 a gallon, local stores with higher prices are to_____ have a(n) _____in the number of customers.

• A)likely; increase
• B)not likely; change
• C)not likely; increase
• D)likely; decrease

Differentiate between risk-averse and risk-seeking behavior and their implications on decision-making.

Recognize the role of uncertainty in economic outcomes and personal finance decisions.

Understand and calculate the total utility of income and its relationship with risk aversion.

Analyze the impact of probabilities on expected outcomes and decisions.

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Definitions:

Divestiture

Corporate action of selling off subsidiary business units or interests.

Business Transaction

An exchange between two or more parties that involves the buying, selling, or trading of goods, services, or information.

Subsidiary Business

A company that is completely or partially owned and controlled by another company, known as the parent company.

Company Intranet

A private network used by a company to securely share corporate information and computing resources with its employees.