If the Price of Gasoline in This Country Were Expected

question 203

Multiple Choice

If the price of gasoline in this country were expected to rise due to a permanent increase in the tax on gasoline, which of the following would you expect to happen?

• A) The demand for gasoline would become more elastic.
• B) The demand for gasoline would decrease as a result of the higher price.
• C) Producers will have less of an incentive to supply gasoline as a result of the higher taxes.
• D) The elasticity of demand will not change since gasoline is a necessary good.

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Definitions:

Futuristic Perspective

Refers to a forward-looking viewpoint, focusing on innovative or predicted advancements and their implications for the present and future.

Stateless Companies

Businesses that operate globally without being primarily affiliated or located in a single country.

Transnational

Pertaining to or operating across national borders, often used to describe corporations, investments, or activities that are not confined to a single country.

Transnational Company

A multinational corporation that operates across multiple countries, maintaining significant operations and management in more than one country.