Suppose a 20 Percent Increase in the Price of Gasoline

question 129

Multiple Choice

Suppose a 20 percent increase in the price of gasoline results in a 25 percent increase in the quantity supplied.This response means that gasoline has

• A) an elastic supply.
• B) an inelastic supply.
• C) a unit elastic supply.
• D) an inelastic demand.
• E) an elastic demand.

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Definitions:

Telepathy

The purported transmission of information from one person to another without using any known human sensory channels or physical interaction.

Context Effect

The influence of environmental factors on one’s perception, decision making, or cognition.

Proximity

The state of being close or near in space, time, or relationship, which can influence social connections and interactions.

Interposition

A visual cue in perception that occurs when one object partially blocks another, which can be used to perceive depth and spatial relationships.