Consider the market for gasoline in a moderately large city. All else constant, it would be reasonable to conclude that the price elasticity demand for any individual gas station would be higher (more elastic) than the price elasticity of demand for

If two variables are inversely related, then as the value of one variable:

A. increases, the value of the other may either increase or decrease. B. decreases, the value of the other decreases. C. increases, the value of the other decreases. D. increases, the value of the other increases.

Exhibit 4-5 Supply and demand curves for computers Which of the following changes could cause the computer market to change as shown in Exhibit 4-5?

A. Lower costs for computer chips and motherboards. B. The failure of several computer manufacturers. C. Higher prices for computer software. D. More features and greater ease of use.