During Last Year the Price of Regular Unleaded Gasoline in Oakland,California

question 84

Multiple Choice

During last year the price of regular unleaded gasoline in Oakland,California increased 11.0 percent.If the price elasticity of demand for gasoline was 0.13,the price hike means that the quantity demanded decreased by

• A) 1.43 percent.
• B) 8.46 percent.
• C) 0.16 percent.
• D) 4.31 percent.
• E) 6.46 percent.

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Definitions:

Resale

The act of selling a product or service again, often after it has been bought from the original seller or manufacturer.

Merchandise

Goods that are available for sale in retail, encompassing a wide range of products from clothing to electronics.

Direct Channel

A distribution method where a company sells its products or services directly to consumers, bypassing intermediaries.

Ultimate Consumers

The final users or purchasers of a product or service, typically individuals who buy for personal, family, or household use.