All Else Constant,a Large Decrease in the Number of People

question 89

Multiple Choice

All else constant,a large decrease in the number of people who want to own sport utility vehicles (SUVs) because of their poor fuel efficiency could be expected to cause:

• A)an increase in the supply of SUVs.
• B)a decrease in the equilibrium price of gasoline.
• C)an increase in the equilibrium price of SUVs.
• D)an increase in the supply of gasoline.

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Definitions:

Quasilinear Preferences

Preferences characterized by a linear utility function in one good, making the marginal rate of substitution dependent only on quantities of other goods.

Campers' Utility

The satisfaction or happiness derived by campers from engaging in camping activities, possibly influenced by factors like location, weather, or equipment.

Profit Functions

Mathematical functions that represent the profit of a firm or business based on various inputs, costs, and outputs.

Advertising Expenditures

Advertising expenditures refer to the amount of money spent on advertising products or services, aiming to increase consumer awareness and consequently sales.