Which Statement Is Consistent with the Study Reported in the Evidence-Based

question 98

Multiple Choice

Which statement is consistent with the study reported in the Evidence-Based Economics element in this chapter?

• A) The relatively low quantity of gasoline demanded in Brazil explains why its government taxes gasoline heavily.
• B) The relatively modest quantity of gasoline demanded in Mexico explains why the gasoline price in Mexico is between that of Brazil and Venezuela.
• C) The very low gasoline price due to large subsidies explains why more gasoline is consumed in Venezuela than in other countries.
• D) The very high gasoline price due to high taxes explains why more gasoline is consumed in Mexico than in Brazil.

---

Definitions:

Total Revenue

The total amount of money generated by the sale of goods or services before any costs are subtracted.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level in a given time period.

Total Revenue

The total amount of money generated by the sale of goods or services before any expenses are subtracted.

Inelastic Portion

Part of the demand curve where consumers are less sensitive to price changes, meaning that the quantity demanded changes little with a significant price change.