The Elasticity of Demand for Gasoline Is Likely to Be

question 64

Multiple Choice

The elasticity of demand for gasoline is likely to be

• A)small, but grow as time goes by.
• B)small and shrink as time goes by.
• C)large and grow as time goes by.
• D)large and shrink as time goes by.

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Definitions:

Foreign Currency

Currency used in a country other than one's own, involved in international trade and investing.

Exchange Rate Risk

The potential for investors to experience losses due to changes in the exchange rate between currencies.

Forward Contracts

Customizable financial contracts traded over-the-counter between two parties to buy or sell an asset at a specified future date for a price agreed upon today.

Economic Conditions

The state of an economy at a given time, encompassing factors like inflation, unemployment, and GDP growth.