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:

English Laws

The body of legal norms and statutes that originated and were developed in England, forming the basis of the common law legal system.

John Wesley

An English cleric, theologian, and evangelist who was a leader of the Methodist movement in the 18th century, emphasizing a methodical approach to religious study and practice.

Methodism

A group of historically related denominations of Protestant Christianity which derive their inspiration from the life and teachings of John Wesley.

Spiritual Awakening

A profound realization or enlightenment that an individual experiences, leading to a deeper understanding of life and one's place in the universe.