Some Environmental Groups Are on Record Suggesting That the Price

question 101

Multiple Choice

Some environmental groups are on record suggesting that the price of gasoline should be much higher than it was in the early 1990s.Why might they say this?

• A) They own stock in oil companies.
• B) They anticipate that the longer the price is high, the more elastic the response by consumers will be.
• C) They anticipate that the longer the price is high, the less elastic the response by consumers will be.
• D) They anticipate that higher prices will reduce the price elasticity of supply of oil.

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Definitions:

Product

An item or service created through a process and offered to the market to satisfy a need or want.

Stanley Milgram

An American social psychologist best known for his controversial experiments on obedience to authority conducted in the 1960s.

Obedience

The act of following orders or directions from an authority figure, often without questioning them.

Experimenter

An experimenter is a researcher who conducts experiments, which are structured investigations designed to test hypotheses and understand causal relationships in scientific studies.