Related to the Economics in Practice on page 155: 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 rises, it becomes more costly to operate the truck for deliveries. Since the truck gets fewer miles per gallon at higher speeds, instructing the driver to drive slower can improve fuel efficiency, thereby reducing the cost per delivery in terms of fuel consumption. This is a way to mitigate the impact of rising gasoline prices on operating costs.

Related to the Economics in Practice on Page 155: Suppose