If the Consumer Has a Great Deal of Time to Adjust

question 68

Multiple Choice

If the consumer has a great deal of time to adjust to an increase in the price of gasoline,which of the following is correct?

• A)Quantity demanded will be relatively sensitive to the change in price.
• B)The percentage change in quantity demanded will be quite small relative to the percentage change in price.
• C)The percentage change in price will be quite large relative to the percentage change in quantity demanded.
• D)Demand will tend to be unitary elastic as it is for most goods in the long run.

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Definitions:

Consumer Derives

The satisfaction or utility that a consumer obtains from purchasing and using goods or services.

Satisfaction

The fulfilment of one's needs or desires through the consumption of goods or services, often used as a measure of consumer contentment with a product.

Marginal Utility

The additional satisfaction or utility that a consumer gains from consuming one more unit of a good or service.

Pretzels

A type of baked pastry made from dough that is commonly shaped into a knot and typically salted.