Even the Demand for a Necessity Such as Gasoline Will

question 89

True/False

Even the demand for a necessity such as gasoline will respond to a change in price, especially over a longer time horizon.

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Definitions:

Market Size

The total volume of a market, often measured in terms of total sales, that is available for a product or service.

Tax on Buyers

A financial charge imposed on purchasers within a market, which can shift demand curves and affect market equilibrium.

Demand Decreases

A decrease in the quantity of a product or service that consumers are willing and able to purchase at given prices.

Tax on Buyers

A fiscal charge imposed directly on purchasers, which shifts the demand curve downward, reflecting a decrease in the net price received by sellers.