As More Time Passes,the Price Elasticity of Gasoline

question 232

Multiple Choice

As more time passes,the price elasticity of gasoline

• A) increases.
• B) decreases.
• C) stays the same.
• D) becomes perfectly inelastic.
• E) becomes perfectly elastic.

---

Definitions:

Repurchasing Shares

The act of a company buying back its own stocks from the marketplace, which can affect the company’s share price and equity structure.

Equity Firm

A company that invests in businesses, typically by purchasing equity stakes, with the aim of earning returns through dividends or capital appreciation.

Shares Outstanding

The total number of shares of a company that are currently owned by shareholders, including both public investors and company officers or insiders.

Borrow

To receive something of value with the promise to return it or its equivalent value at a future date.