If the price of gasoline rose 50% during a period in which the general price level rose 100%, economic theory would predict Select one:
A) a decline in the quantity of gasoline demanded.
B) an increase in the quantity of gasoline demanded.
C) a decrease in the demand for gasoline.
D) an increase in the supply of gasoline.
E) less driving by motorists.
Ans: B) an increase in the quantity of gasoline demanded.
Economics
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A supply curve that is parallel to the price axis is
A) perfectly elastic. B) perfectly inelastic. C) relatively inelastic. D) unitary elastic.
Economics
Economists are very good at explaining how individual markets work. Economists are less successful at explaining
a. market pricing. b. recessions and inflation. c. central planning. d. business firm profits.
Economics