Related to the Economics in Practice on page 151: Suppose you own a truck and use it to deliver merchandise to retailers and hire a driver to make such deliveries. At higher rates of speed the truck gets fewer miles per gallon of gas. Holding all else constant, as the price of gasoline continues to rise
A) you will instruct your driver to drive faster.
B) you will instruct your driver to drive slower.
C) you will ask your driver to change their driving in any way.
D) you will make more deliveries to cover the increasing cost of fuel.

Question

Quizplus · Accepted Answer

As the price of gasoline continues to rise, the cost of fuel becomes a significant expense in the delivery business. Therefore, to reduce the fuel consumption, it is best to instruct the driver to reduce the speed of the truck, which would result in better miles per gallon of fuel. This would help to save fuel costs and increase profits for the business.

Related to the Economics in Practice on Page 151: Suppose