Which of the Following Statements Most Fully Explains a Driver's

question 169

Multiple Choice

Which of the following statements most fully explains a driver's decision, as discussed in the Case in Point on Changing Lane and Raising Utility, to pay to use a highway express lane?

• A) The total utility of using the lane must be greater than zero.
• B) The marginal utility per dollar on using the lane must be greater than zero.
• C) The marginal utility per dollar spent on the lane must be equal to the price per gallon of gasoline plus associated driving costs.
• D) The marginal utility per dollar spent on the lane must be greater than the marginal utility per dollar spent on the next best alternative.

---

Definitions:

Elasticity Coefficient

A measure of how much the quantity demanded or supplied of a good responds to a change in price, income, or other variables.

Inelastic

A situation where the demand or supply of a good or service is not significantly affected by changes in price.

Fastest-growing

Describes entities, sectors, or economies that are increasing in size, value, or importance at a more rapid pace than others within the same category.

Occupations

Refers to various jobs or professions that individuals engage in to earn income and contribute to the economy.