Which of the following sequences leads to a shortage of gasoline?
a. Gas price is fixed at PC; S1 shifts to S2; a gap develops between QS and QD.
b. Gas price is fixed at PC; a gap develops between QS and QD; S1 shifts to S2.
c. S1 shifts to S2; gas price is fixed at PC; a gap develops between QS and QD.
d. S1 shifts to S2; a gap develops between QS and QD; gas price is fixed at PC.
c. S1 shifts to S2; gas price is fixed at PC; a gap develops between QS and QD.
You might also like to view...
Suppose that we find that student grades and time spent at parties move in opposite directions. A graph of the relationship between these two variables would curve
A) upward and be linear. B) upward and may be linear or nonlinear. C) downward and be linear. D) downward and may be linear or nonlinear.
If some monopolistically competitive firms exit their market after suffering short-run losses, the demand curves of remaining firms will shift to the right
Indicate whether the statement is true or false
External economies of scale arise when the cost per unit
A) falls as the industry grows larger and rises as the average firm grows larger. B) rises as the industry grows larger and falls as the average firm grows larger. C) falls as the industry and the average firm grows larger. D) remains constant over a broad range of output. E) rises as the industry and the average firm grows larger.
Which of the following will NOT shift the aggregate demand curve?
A) a change in the price level B) a change in tax rates C) a change in the amount of money in circulation D) a change in real interest rates