The Cost of Repositioning an Automobile Gas Tank for Greater

question 37

Multiple Choice

The cost of repositioning an automobile gas tank for greater safety is $11 per vehicle for 12.5 million vehicles. The automobile company places a value on life of $500,000. To justify redesigning the location of the gas tank, the number of deaths expected to occur if the gas tank location is not redesigned would have to be at least:

• A) 1.
• B) 100.
• C) 175.
• D) 275.

---

Definitions:

Senior Citizens

Individuals who have reached a certain age, often associated with retirement and receiving certain benefits due to their age.

Income Elasticity

A measure of how the quantity demanded of a good changes in response to a change in consumers' income.

BMW

A German multinational company that produces luxury vehicles and motorcycles.

North America

A continent located in the northern hemisphere, bounded by the Arctic Ocean, Atlantic Ocean, and Pacific Ocean.