The Price of Petrol Increases by 20% and Remains at the New

question 67

Multiple Choice

The price of petrol increases by 20% and remains at the new higher level. Which of the following statements is true?

• A) Demand for petrol will increase after people adjust to the new higher price.
• B) The price elasticity of demand for petrol will not be affected by the change in the price of petrol over the long run.
• C) Initially after the price change the price elasticity of demand will be less elastic than it will be a few years after the price change.
• D) Initially after the price change the price elasticity of demand will be more elastic than it will be a few years after the price change.

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Definitions:

Bipolar II

A subtype of bipolar disorder characterized by patterns of depressive episodes and hypomanic episodes, but not the full-blown manic episodes of Bipolar I.

Major Depressive

A mental disorder characterized by at least two weeks of pervasive sadness or loss of interest in activities, accompanied by additional psychological symptoms.

Persistent Depressive

A chronic form of depression marked by a long-term, continuous presence of sad or empty mood, also known as dysthymia.

Splitting

A cognitive distortion where one views people or situations as entirely good or entirely bad, with no middle ground.