If the Price of Gas Is $2

question 42

True/False

If the price of gas is $2.35 per gallon then the cost of filling a car's tank with gas is directly proportional to the number of gallons of gas purchased.

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Definitions:

Purely Competitive

A market structure characterized by many buyers and sellers, all of whom are price takers offering homogenous products.

Downsloping

Characteristic of a curve or line on a graph that shows a decrease in value as it moves from left to right, commonly used in economics to describe demand curves.

Market Demand

The aggregate amount of a product or service all buyers in a market are prepared to buy at different price points.

Competitive Industry

An industry structure where many firms compete for market share, with no single firm dominating the market.