The Price Elasticity of Demand for Gasoline in the Long

question 40

Multiple Choice

The price elasticity of demand for gasoline in the long run has been estimated to be -1.5.If an extended war in the Middle-East caused the price of oil (from which gasoline is made) to increase and remain high for a decade, how would that affect total expenditures on gasoline in the long run, all other things unchanged?

• A) total expenditures would rise
• B) total expenditures would fall
• C) total expenditures would remain unchanged
• D) not enough information is given to answer the question

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Definitions:

Histrionic Personality Disorder

A mental disorder characterized by a pattern of excessive attention-seeking emotions, including an excessive need for approval and inappropriate seductiveness.

Dramatic Behaviors

Activities or actions characterized by expressive, exaggerated, or theatrical elements.

Impulsive Behaviors

Actions performed suddenly without clear thought or planning, often in response to immediate stimuli.

Personality Disorder

A type of mental disorder characterized by enduring maladaptive patterns of behavior, cognition, and inner experience.