Related to the Economics in Practice on page 151: You own a truck and use it to deliver merchandise to retailers and hire a driver to make such deliveries. The speed at which you instruct the driver to drive depends on
A) the driver's wage only.
B) the price of gasoline only.
C) the driver's wage and the price of gasoline.
D) neither the driver's wage nor the price of gasoline.

Question

Quizplus · Accepted Answer

The speed at which the driver is instructed to drive depends on both the driver's wage and the price of gasoline. If the driver's wage is higher, he may drive slower and take more time to complete the delivery, as he can earn more by doing so. On the other hand, if the price of gasoline is higher, the driver may drive faster to complete the delivery quickly and save on fuel costs. Therefore, both factors impact the speed at which the driver is instructed to drive.

Related to the Economics in Practice on Page 151: You