Suppose sport utility vehicles get poor gas mileage compared to other available cars. If the price of gasoline increases, then one would expect:
A. the demand for sport utility vehicles to increase.
B. the quantity demanded of sport utility vehicles to decrease.
C. the demand for sport utility vehicles to decrease.
D. the demand for gasoline to decrease.
Answer: C
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Indicate whether the statement is true or false
Kevin owns a personal training gymnasium in Orlando. The above figure shows the demand and cost curves for his firm, which competes in a monopolistically competitive market. What price will Kevin charge per session?
A) $100 B) $60 C) $40 D) $20 E) $80
Price discrimination is possible, in part, because
A) costs of production vary as output increases. B) monopolies are regulated. C) monopolies don't profit maximize. D) the willingness to pay can vary among groups of buyers. E) monopolies face horizontal demand curves.
If in the long run, any government policy that increases exports
A) also increases imports. B) decreases imports. C) has no impact on imports. D) makes imports become negative.