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:

Leadership Making

The process of influencing others to understand and agree about what needs to be done and how to do it, and the process of facilitating individual and collective efforts to accomplish shared objectives.

Prescriptive Nature

Characterized by giving directives or instructions on how something should be accomplished, often found in guidelines, regulations, or methodologies.

LMX

Refers to Leader-Member Exchange theory, which explores how leaders and followers establish relationships that can impact performance and job satisfaction.

Leadership Making

The process of developing leadership capabilities within individuals and organizations, emphasizing the growth and evolution of effective leadership.