Examlex

Solved

The Price of a Gallon of Gasoline Increases 10% This

question 41

Essay

The price of a gallon of gasoline increases 10% this year.As a result, which of the following events is most likely to occur?
A.More people will drive their cars.
B.Public transportation usage will decrease.
C.Gasoline expenditures will increase if gasoline is an inelastic good.
D.Fewer people will ride bicycles, a substitute for car travel.


Definitions:

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for significant competitive pressure but some degree of pricing power.

Price-Output Decisions

The process by which firms decide at what production levels and prices they will operate to maximize profits.

Small Number

A numerical value considered low in quantity or magnitude, often contextually determined based on comparison or specific thresholds in various fields.

Rivals

Rivals are competitors within the same industry or market vying for the same customer base or resources, often engaging in competitive strategies to gain an advantage.

Related Questions