One Reason the U

question 119

Multiple Choice

One reason the U.S.government might subsidize research of an alternative to crude-oil based gasoline is that

• A) more substitutes will reduce the price of crude-oil based gasoline.
• B) more substitutes will increase the elasticity of crude-oil based gasoline.
• C) more substitutes will reduce the impact of supply shocks on the price of crude-oil based gasoline.
• D) Any or all of the above.

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Definitions:

Sole Stockholder

A single individual or entity that owns 100% of the shares of a corporation.

Corporate Entity

A corporate entity is a company or group that is authorized to act as a single entity and recognized as such in law, separate from its shareholders.

Promoter

An individual or entity that takes the initiative in founding and organizing a business or enterprise, often before it’s officially established.

Sole Shareholder

An individual or entity that owns 100% of the shares of a corporation, maintaining complete control.