When the Price of Gasoline Increases, Ceteris Paribus

question 17

Multiple Choice

When the price of gasoline increases, ceteris paribus:

• A) the quantity demanded of gasoline will decrease
• B) the quantity demanded of gasoline will increase
• C) the quantity demanded of gasoline will stay the same
• D) not enough information to answer

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Definitions:

Amygdala

A part of the brain involved in experiencing emotions, such as fear and pleasure.

Hippocampus

A region of the brain involved in the formation of new memories and is also associated with learning and emotions.

Fear Responses

Emotional and physiological reactions to perceived threats, including fight or flight responses.

Thalamus

A crucial brain structure that acts as a relay station, transmitting sensory and motor signals to the cerebral cortex, except for smell.