Recall the Application about the increase in purchases of hybrid vehicles to answer the following question(s).
-According to the Application, one factor which was responsible for roughly one-third of hybrid vehicles purchased in 2007 was an increase in the price of gasoline. The increase in sales due to higher gasoline prices describes the economic concept of
A) using assumptions to simplify.
B) ceteris paribus.
C) marginal thinking.
D) rational self interest.

Question

Quizplus · Accepted Answer

The increase in sales of hybrid vehicles due to higher gasoline prices illustrates the concept of rational self-interest, where consumers make purchasing decisions that best serve their economic interests, such as saving money on fuel costs.

Recall the Application About the Increase in Purchases of Hybrid