Suppose That Gasoline Prices Increase Dramatically This Month

question 225

Multiple Choice

Suppose that gasoline prices increase dramatically this month.Lola commutes 100 miles to work each weekday.Over the next few months,Lola drives less on the weekends to try to save money.Within the year,she sells her home and purchases one only 10 miles from her place of employment.These examples illustrate the importance of

• A)the availability of substitutes in determining the price elasticity of demand.
• B)a necessity versus a luxury in determining the price elasticity of demand.
• C)the definition of a market in determining the price elasticity of demand.
• D)the time horizon in determining the price elasticity of demand.

---

Definitions:

Fraudulent

Involving deceit or trickery intended to gain an unfair or unlawful advantage.

U.S. Mail

The federal postal service in the United States, responsible for the collection, transportation, and delivery of mail and packages.

Commercial Bribery

The act of offering, giving, receiving, or soliciting something of value to influence the actions of an official or other person in charge of a public or legal duty.

Public Official

A person holding a position of authority or service in a government or public service organization.