If the Price of Gasoline Rose from $2

question 317

Multiple Choice

If the price of gasoline rose from $2.85 to $2.95 per gallon, your expenditure on gasoline would increase if your price elasticity of demand for gasoline equals

• A) 1.25.
• B) 1.00.
• C) 0.75.
• D) Total revenue would increase at all of the above elasticities.

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold in the marketplace.