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The Price Elasticity of Demand for Gasoline in the Short

question 142

Multiple Choice

The price elasticity of demand for gasoline in the short run has been estimated to be 0.1.If a war in the Middle East causes the price of oil (from which gasoline is made) to increase,how will that affect total expenditures on gasoline in the short run,all other things equal?


Definitions:

Biological Clock

An internal mechanism in organisms that controls the timing of various biological functions, such as sleep-wake cycles and hormonal changes.

Daily Rhythms

Natural patterns of activity that follow a roughly 24-hour cycle in living organisms, often referred to as circadian rhythms.

Hypothalamus

A region of the brain that coordinates both the autonomic nervous system and the activity of the pituitary, controlling body temperature, thirst, hunger, and other homeostatic systems.

Cerebrum

The largest part of the brain, responsible for higher brain functions such as thought, action, and emotion.

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