.Jerry drives up to a gas station. Before looking at the price, he says, “I’d like $10 worth of gas.” Jerry’s price elasticity of demand is a. perfectly inelastic. b. perfectly elastic. c. unit elastic. d. None of the above is correct.. 2.Which of the following must always be true as the quantity of output increases? a. Marginal cost must rise. b. Average total cost must rise. c. Average variable cost must rise. d. Average fixed cost must fall.

.Jerry drives up to a gas station. Before looking at the price, he says, “I’d like $10 worth of gas.” Jerry’s price elasticity of demand is a. perfectly inelastic. b. perfectly elastic. c. unit elastic. d. None of the above is correct.. 2.Which of the following must always be true as the quantity of output increases? a. Marginal cost must rise. b. Average total cost must rise. c. Average variable cost must rise. d. Average fixed cost must fall.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 9PA

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