Which of the Following Statements About the Consumers' Responses to Rising

question 5

Multiple Choice

Which of the following statements about the consumers' responses to rising gasoline prices is correct?

• A)About 10 percent of the long-run reduction in quantity demanded arises because people drive less and about 90 percent arises because they switch to more fuel-efficient cars.
• B)About 90 percent of the long-run reduction in quantity demanded arises because people drive less and about 10 percent arises because they switch to more fuel-efficient cars.
• C)About half of the long-run reduction in quantity demanded arises because people drive less and about half arises because they switch to more fuel-efficient cars.
• D)Because gasoline is a necessity,consumers do not decrease their quantity demanded in either the short run or the long run.

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Definitions:

High Differentiation

A strategy or condition in which a company or organization develops a diversity of products, services, or roles to cater to various market needs or internal efficiencies.

Organizational Units

Constituents or subdivisions within an organization, each with specific roles or functions.

Horizontal Division

Involves the separation of tasks within an organization based on specific functions or roles, promoting specialization.

Key Themes

Central topics or issues that are of utmost importance within a specific context or area of study.