Which of the Following Statements About the Consumers' Responses to Rising

question 5

Multiple Choice

Which of the following statements about the consumers' responses to rising gasoline prices is correct?

• A)About 10 percent of the long-run reduction in quantity demanded arises because people drive less and about 90 percent arises because they switch to more fuel-efficient cars.
• B)About 90 percent of the long-run reduction in quantity demanded arises because people drive less and about 10 percent arises because they switch to more fuel-efficient cars.
• C)About half of the long-run reduction in quantity demanded arises because people drive less and about half arises because they switch to more fuel-efficient cars.
• D)Because gasoline is a necessity,consumers do not decrease their quantity demanded in either the short run or the long run.

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Definitions:

Communal Interests

Shared interests or common goals that benefit a community or group as a whole.

Academic Standards

Benchmarks or criteria established by educational institutions to measure and ensure the quality and level of learning achievements.

Perceived Similarity

The extent to which individuals believe they share common attributes, beliefs, or backgrounds with others, often influencing attraction and social cohesion.

Actual Similarity

The real or factual likeness or resemblance between two entities or concepts.