The price elasticity of demand for gasoline in the short run has been estimated to be 0.1.If a war in the Middle East causes the price of oil (from which gasoline is made) to increase, how will that affect total expenditures on gasoline in the short run, all other things equal?
A.Demand will stay the same, but total expenditures will fall.
B.Demand will decrease, but total expenditures will rise.
C.Total expenditures will remain unchanged.
D.Demand will not change much, but total expenditures will rise.

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The Answer of The price elasticity of demand for gasoline in the short run has been estimated to be 0.1.If a war in the Middle East causes the price of oil (from which gasoline is made) to increase, how will that affect total expenditures on gasoline in the short run, all other things equal?
A.Demand will stay the same, but total expenditures will fall.
B.Demand will decrease, but total expenditures will rise.
C.Total expenditures will remain unchanged.
D.Demand will not change much, but total expenditures will rise.

The Price Elasticity of Demand for Gasoline in the Short