Which of the Following Statements About the Consumers' Responses to Rising

question 2

Multiple Choice

Which of the following statements about the consumers' responses to rising gasoline prices is correct?

• A)Because gasoline is a necessity,consumers do not decrease their quantity demanded in either the short run or the long run.
• B)Consumers react to a 10% increase in price with about a 10% decrease in quantity demanded in both the short run and long run.
• C)Consumers decrease their quantity demanded more in the short run than in the long run.
• D)Consumers decrease their quantity demanded more in the long run than in the short run.

---

Definitions:

Demand For Land

The desire, backed by purchasing power, for the use or ownership of land, which is influenced by various economic and societal factors.

Efficient Use Of Resources

The optimal allocation and utilization of resources to maximize productivity and minimize waste.

Input Price

Input Price refers to the cost of resources used in the production of goods or services, including materials, labor, and overhead, which can affect production costs and pricing strategies.

Output Price

The price at which a product or service is sold, often determined by market conditions or regulation.