Jim Has Estimated Elasticity of Demand for Gasoline to Be

question 84

Multiple Choice

Jim has estimated elasticity of demand for gasoline to be -0.7 in the short-run and -1.8 in the long run. A decrease in taxes on gasoline would:

• A)​lower tax revenue in both the short and long run. 
• B)raise tax revenue in both the short and long run.
• C)raise tax revenue in the short run but lower tax revenue in the long run. 
• D)​lower tax revenue in the short run but raise tax revenue in the long run. 

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Definitions:

Unobtrusive Measure

A method of gathering data without affecting or alerting the subjects, ensuring behaviors remain natural and unperturbed.

Qualitative Approach

A research strategy focused on understanding phenomena through detailed observation, interviews, and analysis of participants' perspectives and behaviours.

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A specific activity or gathering that occurs during the summer season, often characterized by outdoor, recreational, or cultural elements.

City Council

An elected body that governs a city, responsible for creating laws, policies, and decisions on local government issues.