Multiple Choice
Consider Sam and Linda both drive a relatively inefficient sport utility vehicle (SUV) .Sam has a lease that doesn't expire for three years whereas Linda owns her sport utility vehicle free and clear.If the price of gasoline was to increase by fifty percent,which of these statements is most likely true?
A) Linda will have a less elastic response than Sam.
B) Sam will have a less elastic response than Linda.
C) Sam and Linda will have identically elastic responses.
D) Sam will have a more elastic response than Linda.
Correct Answer:

Verified
Correct Answer:
Verified
Q19: If a linear supply curve has a
Q22: When comparing elasticities between two different linear
Q37: Which good would you expect to have
Q44: Explain why short-run demand for frozen fish
Q52: Only in the case of perfectly inelastic
Q57: A vertical supply curve exhibits<br>A) a constant
Q73: The price elasticity of demand<br>A) depends on
Q76: If the price of orange juice rises
Q89: The price elasticity of supply when the
Q117: Suppose the demand curve is perfectly inelastic