Measuring the Price of Gasoline in Dollars Per Quart, an Economist

question 8

Multiple Choice

Measuring the price of gasoline in dollars per quart, an economist calculates the price elasticity of demand to be 1. What would the price elasticity of demand be if the economist had chosen to measure the price in dollars per gallon?

• A) 1
• B) 4
• C) .25
• D) .5

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Definitions:

World View

A person's or group's belief system or perspective that shapes their interpretation and understanding of the world around them.

Social Norms

Shared beliefs about acceptable and expected behavior within a group or society.

Teleology

The philosophical study of design and purpose in the natural world, or the explanation of phenomena by the purpose they serve rather than by postulated causes.

World View

The fundamental cognitive orientation of an individual or society encompassing the whole of the individual's or society's knowledge and point of view.