Multiple Choice
Assume that the price elasticity of demand for gasoline is -0.06.If the government tax causes the price of gasoline to increase by 50 percent, what will be the decrease in the quantity of gasoline demanded?
A) 0.5 percent
B) 3.0 percent
C) 8.33 percent
D) 50 percent
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q24: Explain the economic concept of price elasticity
Q33: Suppose the supply of bicycles is price
Q35: The price elasticity of demand is equal
Q46: Suppose the absolute value of the price
Q47: According to a study of the U.S.demand
Q51: If a 6 percent increase in income
Q51: Suppose the price of gasoline in July
Q202: If the absolute value of the price
Q217: Most people buy salt infrequently and in
Q224: When is demand perfectly elastic? When is