The Price Elasticity of Demand for Automobiles Measures the Responsiveness

question 8

Multiple Choice

The price elasticity of demand for automobiles measures the responsiveness of

• A) consumer purchases to a change in the price of automobiles.
• B) consumer purchases to a change in the quality of automobiles.
• C) supplier production levels to a change in the price of automobiles.
• D) consumer purchases of automobiles to a change in their income.

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Definitions:

Energy Crisis

A condition characterized by a significant shortage of energy resources, leading to escalated energy prices and potentially impacting economic and social activities.

Gasoline Consumption

The total amount or volume of gasoline used by consumers or industries within a given period.

Market Adjustment

The process by which market forces of supply and demand determine prices and quantity of goods and services, leading to an equilibrium state.

Price-taker Market

A market situation where individual sellers or buyers have no control over the price of a product, typically seen in perfectly competitive markets.