32. Holding all other forces constant, when the price ofgasoline rises, the numb

Question

32. Holding all other forces constant, when the price ofgasoline rises, the number of gallons of gasoline demanded wouldfall substantially over a ten-year period because

a. buyers tend to be much less sensitive to a change in pricewhen given more time to react.

b. buyers tend to be much more sensitive to a change in pricewhen given more time to react.

c. buyers will have substantially more income over a ten-yearperiod.

d. the quantity supplied of gasoline increases very little inresponse to an increase in the price of gasoline.

33. Necessities such as food and clothing tend to have

a. high price elasticities of demand and high incomeelasticities of demand.

b. high price elasticities of demand and low income elasticitiesof demand.

c. low price elasticities of demand and high income elasticitiesof demand.

d. low price elasticities of demand and low income elasticitiesof demand.

Explanation / Answer

All forces constant means stays the same.1. B 2. A because thereare many substitutes for regular food and clothes. Check. If theclothes and food are rare the elasticity would be lower. A goodlike insulin would be lower because it is a life or death situationand I would pay for it regardless of the price. Like I said. Pleaserate

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