The price elasticity of demand for gasoline is 0.40. If the price of gasoline rises by 20 percent, there will be
A) a decrease of more than 20 percent in the quantity of gasoline demanded.
B) an increase in the total revenue received from the sale of gasoline.
C) a loss of total revenue for gasoline producers, because at a higher price the quantity of gasoline demanded decreases.
D) no change in the quantity of gasoline sold because people need gasoline.
B
Economics
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The proposal to keep the quantity of money growing at a slow constant rate is an example of
A) a constant federal funds rate rule. B) a nominal GDP targeting rule. C) an inflation rate targeting rule. D) discretionary policy. E) a money targeting rule.
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If consumption is defined as C = 1,350 + 0.6Y, then the marginal propensity to consume is 0.6
Indicate whether the statement is true or false
Economics