Recall the Application About How Changes in Supply Affect the Price

question 82

Multiple Choice

Recall the Application about how changes in supply affect the price of gasoline to answer the following question(s) .
-Recall the Application.Suppose the price elasticity of demand for gasoline is 0.20 and the price elasticity of supply for gasoline is 0.55.If supply decreases by 10 percent,the equilibrium price will increase by

• A) 13.5 percent.
• B) 28.5 percent.
• C) 87.5 percent.
• D) 187.5 percent.

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Definitions:

Sympathetic Nervous System

Part of the autonomic nervous system that activates the body's fight-or-flight response during stressful situations.

Parasympathetic Nervous System

A division of the autonomic nervous system responsible for conserving energy and lowering the heart rate, among other actions, to maintain homeostasis.

Autonomic Nervous System

The part of the nervous system responsible for control of the bodily functions not consciously directed, such as breathing, the heartbeat, and digestive processes.

Self Report

A method in research where participants provide information about themselves, typically through questionnaires or interviews.