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.

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Definitions:

Birthrates

The annual count of live births for every thousand people in a population.

Death Rates

The number of deaths in a particular population, scaled to the size of that population, per unit of time.

Demographic Characteristics

The statistical aspects of a population being analyzed or reviewed, such as age, sex, income, education level, and marital status.

Baby Boomers

A generational term used to describe individuals born during the post-World War II baby boom, approximately between the years 1946 and 1964.