The Price Elasticity of Demand for Gasoline Is 0

question 139

Multiple Choice

The price elasticity of demand for gasoline is 0.5 and the price elasticity of supply for gasoline is 1.1.If demand rises by 25%,the price of gasoline will

• A) rise by 15.6%.
• B) fall by 15.6%.
• C) rise by 6.4%.
• D) fall by 6.4%.

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Definitions:

Financial Statement

A written report that quantitatively describes the financial health of a company, including balance sheets, income statements, and cash flow statements.

Reportable Segment

Part of a company that can be clearly distinguished operationally and financially from other parts of the company, requiring separate reporting under certain financial reporting frameworks.

Financial Report

A formal record containing financial information of an entity, including statements of financial position, performance, changes in equity, and cash flow, for a specific period.

All Other Segments

In financial reporting, this term refers to the aggregation of operating segments that are not individually reportable due to their size or significance.