The Price Elasticity of Demand for Gasoline in the Long

question 13

Essay

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 equal?
A.Total expenditures would rise.
B.Total expenditures would fall.
C.Total expenditures would remain unchanged.
D.There is not enough information is given to answer the question.

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Definitions:

Organizational Culture

The values, ideas, attitudes, and norms of behavior that are learned and shared among the members of an organization.

Strategic Business Units

Specialized, autonomous divisions within a larger corporation, each responsible for a distinct product line or market segment and having its own strategy and objectives.

Long-term Goals

Objectives or targets that an individual, group, or organization aims to achieve over an extended period, typically beyond one year.

Visionary Organization

An organization that leads with a forward-looking perspective, setting innovative goals and pursuing long-term success.