The Price Elasticity of Demand for Gasoline in the Short

question 101

Multiple Choice

The price elasticity of demand for gasoline in the short run has been estimated to be -0.1.If a war in the Middle East causes the price of oil (from which gasoline is made) to increase, how will that affect total expenditures on gasoline in the short run, all other things unchanged?

• A) demand will stay the same, but total expenditures will fall
• B) demand will decrease, but total expenditures will rise
• C) total expenditures will remain unchanged
• D) demand will not change, but total expenditures will rise

Identify the effect of government subsidies on market prices and economic welfare.

Evaluate scenarios to determine the most efficient tax policies for raising revenue with minimal excess burden.

Discuss the implications of minimum wage policies and their impact on employment and economic welfare.

Examine the role of government programs in affecting market prices and distribution of economic welfare.

---

Definitions:

Emotional Labor

The effort required to manage and regulate one's emotions to meet the expectations of a job or social situation, often involving the suppression or display of certain emotions.

Bank Teller

An employee of a bank who deals directly with customers, handling transactions such as deposits, withdrawals, and account inquiries.

Funeral Director

A professional who manages and operates the planning and coordination of funerals, handling logistical and legal aspects.

Emotional Labor

The process of managing feelings and expressions to fulfill the emotional requirements of a job. This often involves regulating one's emotions to meet professional demands.