The Price Elasticity of Demand for Gasoline in the Long

question 201

Multiple Choice

The price elasticity of demand for gasoline in the long run has been estimated to be 1.5.If an extended war in the Middle East caused the price of oil (from which gasoline is made) to increase and remain high for a decade,how would that affect total expenditures on gasoline in the long run,all other things equal?

• A)Total expenditures would rise.
• B)Total expenditures would fall.
• C)Total expenditures would remain unchanged.
• D)The information is insufficient to answer the question.

---

Definitions:

Electronic Surveillance

Tracking people’s activities with the aid of computers.

Facial Recognition

Facial Recognition is a technology capable of identifying or verifying a person from a digital image or a video frame from a video source by comparing and analyzing patterns.

Photo Tagging

The process of labeling or marking digital photos with keywords, locations, or identifying the people in them for easier organizing and searching.

GPS

Stands for Global Positioning System, a satellite-based navigation system that allows users to determine their exact location anywhere on Earth.