If the Price of Gasoline in This Country Were Expected

question 3

Multiple Choice

If the price of gasoline in this country were expected to rise dueto a permanent increase in the tax on gasoline, which of thefollowing would you expect to happen?

• A)The demand for gasoline would become more elastic.(True Answer )Correct
• B)The demand for gasoline would decrease as a result of the higher price.
• C)Producers will have less of an incentive to supply gasoline as a result of the higher taxes.
• D)The elasticity of demand will not change since gasoline is a necessity good.

---

Definitions:

Intrinsic

Referring to motivation or behavior that is driven by internal rewards or satisfactions rather than external factors.

Great Pleasure

An intense feeling of deep satisfaction, joy, or delight.

Intrinsically Motivated

Refers to being motivated by internal factors, such as personal satisfaction or the joy of doing something, rather than by external rewards.

Extrinsic Motivation

The drive to perform or engage in an activity due to external rewards or pressures, rather than for intrinsic enjoyment or satisfaction.