Hurricane Katrina damaged a large portion of refining and pipeline capacity when it swept through the Gulf coast states in August 2005. As a result of this, many gasoline distributors were not able to maintain normal deliveries
At the pre-hurricane equilibrium price (i.e., at the initial equilibrium price), we would expect to see
A) a shortage of gasoline.
B) an increase in the demand for gasoline.
C) a surplus of gasoline.
D) the quantity demanded equal to the quantity supplied.
A
You might also like to view...
In the above figure, if the price is $4 per unit, how many units will a profit maximizing perfectly competitive firm produce?
A) 0 B) 5 C) 20 D) 30
A contract
a. is an example of a side payment b. eliminates the possibility of simultaneous exchange c. is worthless unless it refers to a perfectly competitive market d. often requires one party to do something first, and the other party to do something later e. can be enforced through the application of criminal law
Which of the following is a characteristic of a sunk cost? a. It cannot be recovered
b. It affects current business decisions. c. It is variable over time. d. It affects marginal costs.
Structural unemployment includes: a. unemployment caused by workers who leave positions to seek better jobs
b. unemployment caused by automation that displaces workers from their jobs. c. unemployment caused by a decline in the economy's total production. d. unemployment caused by the geographical and occupational mobility of the labor force.