When consumers face rising gasoline prices, they typically reduce their quantity demanded more in the short run than in the long run. reduce their quantity demanded more in the long run than in the short run. do not reduce their quantity demanded in the short run or the long run. increase their quantity demanded in the short run but reduce their quantity demanded in the long run.

When consumers face rising gasoline prices, they typically reduce their quantity demanded more in the short run than in the long run. reduce their quantity demanded more in the long run than in the short run. do not reduce their quantity demanded in the short run or the long run. increase their quantity demanded in the short run but reduce their quantity demanded in the long run.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter4: Supply And Demand: An Initial Look

Section: Chapter Questions

Problem 1DQ

See similar textbooks

Related questions

Q: The cost of a gizmo has gone up. Which of the following would indicate that there would be a good…

A: The length of time has a big impact on how elastic the demand is. Long-term customers have the…

Q: If the price elasticity of demand for a product is equal to 0.4, then a decrease in price of 8…

Q: Price elasticity of demand of a good is (-)$1 calculate the percentage change in price that will…

A: According to question we are given that Demand of a good =(-)$1 percentage change =?

Q: If iPad is considered a normal good, when income in Camarillo goes up, the effect on iPad in…

A: In a market, if a good is a normal good, it will have an inverse relationship with the price, and a…

Q: price that will result in 15 percent rise in its demand.

A: # the ratio of the percentage change in the quantity demanded by the percentage change in price…

Q: The monthly quantity demanded for cars is shown in the table below. Demand for Cars Price (dollars)…

A: Demand refers to the quantity of a good or service that a consumer is willing and able to buy at a…

Q: Analyse the determinants of demand for cars in the Malaysian market.

Q: An increase in the demand for MP3 music indicates that more is A) demanded because sellers are…

A: Demand curve shows a negative relationship between price and quantity demanded. It slopes downward.

Q: Your Best Brand Bike Shorts - BBB Shorts have been flying off the shelf. Your chief economist tells…

A: Before campaign: Price elasticity of demand is -5.76 i.e. E1 =-5.76 The price was $240 i.e., P1 =…

Q: 2. Suppose Qd=10,000 -2 Px + 3 Px-4.5M, = where Px $100, P = $50, and M (income) = $2,000. (a) What…

A: Economic analysis in the context of both consumers and producers involve analyzing their respective…

Q: Someone tells you the "absolute value" of the cross price elasticity of two substitutes like Coke…

A: the cross elasticity of demand or cross-price elasticity of demand measures the percentage change…

Q: When price is $5, 20 units of a good are sold. When price is $9, 10 units are sold. Calculate the…

Q: The more time consumers have to adjust to a change in price: the smaller will be the price…

A: Answer- Need to find - The more time consumers have to adjust to a change in price Evaluating the…

Q: he demand for Woobles is unit elastic. When Woobles are priced at $20.00, 10 units are sold. If the…

A: Elasticity = 1 Price = 20, then Unit sold = 10 when Price = 40 then unit sold =?

Q: Average visits per week equal 640 when the copayment is $40 and 360 when the copayment rises to $60.…

A: Given When copayment is $40, then the average visits per week is equal to 640 When copayment is…

Q: HOW DO YOU RESPOND TO PRICE ELASTICITY? People have unlimited needs and wants for their personal…

A: Economics as a subject is used to study and plan the allocation of scarce resources among humans…

Q: .... 2.1 Study the graphs below and answer the questions set. Android phone Apple phone S1 P1 P1 P2…

A: "Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Identify a product or service for which you use on a regular basis. Discuss the product/service in…

A: Demand :Demand is when a consumer has the desire to buy something at the price that he is ready to…

Q: A good whose elasticity of demand is 0.9 is having high elasticity True/False

A: (Q) A good whose elasticity of demand is 0.9 is having high elasticity. True/False

Q: The price elasticity of supply of baking flour is 0.8 when there is an increase of price from RM16…

A: The elasticity of supply = 0.8 If the price of baking flour increases from RM 16 to RM 18, the…

Question

When consumers face rising gasoline prices, they typically

reduce their quantity demanded more in the short run than in the long run.

reduce their quantity demanded more in the long run than in the short run.

do not reduce their quantity demanded in the short run or the long run.

increase their quantity demanded in the short run but reduce their quantity demanded in the long run.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Choose a product which you are familiar with. Using the internet for research (please cite your source), what is the price elasticity of demand for this product or group of products? What does that mean with respect to a 10% increase in the price of this good? What happens to quantity demanded? Which of the 4 determinants of price elasticity of demand do you believe drives this outcome about the good's price elasticity? If there is more than one determining factor, please explain your reasoning. [for many goods, all of the 4 determinants come into play - I just want you to choose the one or two that you believe are most relevant).
Please no written by hand and no emage
When consumers face rising gasoline prices, they typically A. reduce their quantity demanded more in the short run than in the long run.B. reduce their quantity demanded more in the long run than in the short run.C. do not reduce their quantity demanded in the short run or the long run.D. increase their quantity demanded in the short run but reduce their quantity demanded in the long run.E. None of the above .
If the price elasticity of demand for used carspriced between $3,000 and $5,000 is 2 1.2 (usingthe mid-point method), what will be the percentchange in quantity demanded when the price of aused car falls from $5,000 to $3,000?
Price elasticity of demand measures the responsiveness of the quantity demanded to a change in price when all other influences on buyers’ plans remain the same. Write an essay explaining the different types of price elasticity of demand.
Price elasticity for Product A is -2.5 Price elasticity for Product B is -1.5 Which product is more senstive to a change in price? And how so?
cross-price elasticities ?
What is the formula for the price elasticity of demand? The percentage change in the A) quantity demanded divided by the percentage change in the price of a substitute or complement. B) quantity demanded divided by the percentage change in price. C) quantity demanded divided by the percentage change in income. D) quantity supplied divided by the percentage change in price.
If quantity demanded of a product changed from 100 to 120 units due to change in price from P10 to P15, determine the value of the price elasticity and the type of product a 0.40 and necessity b. 0.40 and normal good c. -0.40 and necessity d. -0.40 and normal good
A 20 percent fall in price leads to 80 percent rise in the demand for a good. A consumer buys 100 units of the good at the price of7 20 per unit. At what price will the consumer buy 200 units of the good?
Price (dollars) 8 7 D. 5 10 15 20 25 30 35 Quantity (units per year) In the figure above, when the price falls from $8 to $7, total revenue A) decreases from $210 to $120 so demand is inelastic. B) increases from $120 to $210 so demand is inelastic. C) decreases from $210 to $120 so demand is elastic. D) increases from $120 to $210 so demand is elastic. 6
Price Quantiy Demanded (income = $15,000) Quantity Demanded (income = $24000) 640 8500 7400 920 7150 6900 1120 6450 5830 1300 5895 5385 1430 4950 4730 Calculate your income elasticity of demand as your income increasesfrom $15,000 to $24,000 if the price moves from $640 to $1,120. What does the value tell you about the good?