During Last Year the Price of Regular Unleaded Gasoline in Oakland,California

question 84

Multiple Choice

During last year the price of regular unleaded gasoline in Oakland,California increased 11.0 percent.If the price elasticity of demand for gasoline was 0.13,the price hike means that the quantity demanded decreased by

• A) 1.43 percent.
• B) 8.46 percent.
• C) 0.16 percent.
• D) 4.31 percent.
• E) 6.46 percent.

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Definitions:

Contributed Capital

Funds that shareholders provide to a company in exchange for shares of stock, representing the equity investment in the company.

Equity

The amount of money that would be returned to shareholders if all of the assets were liquidated and all the company's debts were paid off.

Capital Stock

The total amount of shares that a company can issue as authorized by its corporate charter, representing ownership in the company.