If the Price of Gasoline Increased by 5 % and Consumers

question 103

Multiple Choice

If the price of gasoline increased by 5 % and consumers responded by purchasing 1 % less gasoline, the absolute value of price elasticity of demand for gasoline would equal

• A) 0.1.
• B) 0.5.
• C) 1.5.
• D) 0.2.

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Definitions:

Year-End Assets

The total value of all assets that a company or individual owns at the end of a fiscal year.

Liabilities

Financial obligations or debts owed by a person or business to others, required to be repaid over time.

Operating Expense Fee

Fees charged by mutual funds and investment companies for the cost of managing the fund, including administrative and management services.

Front-End Load Fee

A charge applied at the time of purchase of an investment, typically pertaining to mutual funds.