An Owner Finds That When He Uses a Clamshell Luggage

question 8

Multiple Choice

An owner finds that when he uses a clamshell luggage carrier on top of his car, it cuts his gas mileage 3.1%. If he normally gets 40 mpg, what is his mileage when he uses the carrier?

• A) 37.11
• B) 38.76
• C) 39.13
• D) 39.89

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Definitions:

Oligopolist

A market participant in an oligopoly, a market dominated by a small number of firms.

Production Decision

The determination made by a firm regarding the quantity of goods or services to be produced, based on factors like cost of production, market demand, and competition.

Output Effect

The impact on the total production/output of a firm or economy as a result of changing price levels, often referring to the relationship between price changes and quantity supplied.

Price Effect

The impact on consumer demand and supply resulting from changes in the price of goods or services.