If the Demand for Gasoline Becomes More Elastic Over Time

question 56

Multiple Choice

If the demand for gasoline becomes more elastic over time,

• A)the demand curve will shift out.
• B)the demand curve will become flatter.
• C)other things being equal, the equilibrium price of gasoline must fall.
• D)other things being equal, the equilibrium quantity of gasoline must fall.

---

Definitions:

Percentile

A measure used in statistics indicating the value below which a given percentage of observations in a group of observations falls.

Normal Model

A bell-shaped frequency distribution graph where the bulk of the values lie close to the mean, used in many statistical analyses to describe data sets.

Percentile

A measure used in statistics indicating the value below which a given percentage of observations in a group fall.

Standard Deviation

A metric that assesses the level of dispersion or scattering within a collection of data values.