Suppose You Are Advising the Government on Changes in the Gasoline

question 99

Multiple Choice

Suppose you are advising the government on changes in the gasoline market.The current price is $1.00 per litre and the long-run price elasticity of demand is constant at 0.8.If a tax on gasoline causes the price to rise to $1.50 per litre,then quantity demanded is predicted to fall in the long run by

• A)12% and total expenditure will fall.
• B)24% and total expenditure will fall.
• C)32% and total expenditure will fall.
• D)24% and total expenditure will rise.
• E)50% and total expenditure will rise.

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Definitions:

Profitability

An indicator of a business's ability to generate earnings compared to its expenses and other relevant costs incurred during a specific period of time.

Order Management Process

A sequence of steps designed to effectively take, process, and fulfill orders to customer specifications, ensuring a cohesive flow from receipt to delivery.

Order Management System

A software used to track orders from inception to delivery, streamlining the order processing for businesses.

SCOR Model

The Supply Chain Operations Reference model, a management tool used to address, improve, and communicate supply chain management decisions.