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

question 5

Multiple Choice

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

• A)About 10 percent of the long-run reduction in quantity demanded arises because people drive less and about 90 percent arises because they switch to more fuel-efficient cars.
• B)About 90 percent of the long-run reduction in quantity demanded arises because people drive less and about 10 percent arises because they switch to more fuel-efficient cars.
• C)About half of the long-run reduction in quantity demanded arises because people drive less and about half arises because they switch to more fuel-efficient cars.
• D)Because gasoline is a necessity,consumers do not decrease their quantity demanded in either the short run or the long run.

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Definitions:

Restatement Third

A collection of volumes that attempts to distill, clarify, and update the common law in the United States, as applicable to various areas of law.

Torts

are civil wrongs recognized by law as grounds for a lawsuit, resulting in injury or harm constituting the basis for a claim by the injured party.

Physical Harm

Describes injury or damage to a person's body, as opposed to property or psychological harm.

Emotional Harm

Emotional harm refers to psychological damage caused by extreme stress, trauma, or distressing experiences, impacting an individual's mental health and well-being.