Given that diesel cars get much better gas mileage than the typical car, an increase in the price of gasoline would be expected to:
A. decrease the equilibrium price and quantity of diesel cars.
B. increase the equilibrium price and quantity of diesel cars.
C. decrease the equilibrium price and increase the equilibrium quantity of diesel cars.
D. increase the equilibrium price and decrease the equilibrium quantity of diesel cars.
Answer: B
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A) medium of exchange B) unit of account C) store of value D) means of payment E) method of avoiding barter
When government intervenes in the production process because external benefits exist, it typically attempts
A) to impose a tax on each unit produced. B) to shift the industry's demand curve to the left. C) to shift the industry's demand curve to the right. D) to shift the industry's supply curve to the left.
Each and every point along a production possibilities curve represents an efficient output option for an economy
a. True b. False Indicate whether the statement is true or false
An increase in demand for a product and a reduction in the costs of production would: a. increase the equilibrium quantity and increase the equilibrium price
b. increase the equilibrium quantity and decrease the equilibrium price. c. increase the equilibrium quantity and cause an indeterminate change in the equilibrium price. d. decrease the equilibrium quantity and cause an indeterminate change in the equilibrium price.