When the price of oil declines significantly, the price of gasoline also declines. The latter occurs because of a(n):
A. increase in the demand for gasoline.
B. decrease in the demand for gasoline.
C. increase in the supply of gasoline.
D. decrease in the supply of gasoline.
Answer: C
You might also like to view...
Farmer Jones knows that the marginal cost to produce a bushel of tomatoes is $5 per bushel. He also knows that a consumer is willing to pay a maximum of $9 for the bushel. The price of the bushel is $6 and Farmer Jones sells his bushel for $6
On this bushel, Farmer Jones earns a producer surplus equal to A) $1. B) $3. C) $5. D) $6.
If planned aggregate expenditure is above potential GDP and planned aggregate expenditure equals GDP, then
A) the economy is in an expansion. B) actual inventory investment will be less than planned inventory investment. C) actual inventory investment will be greater than planned inventory investment. D) the economy is at full employment.
A production function represents the:
A. relative costs of the inputs across various modes of production. B. relationship between the quantity of inputs and the quantity of outputs. C. relationship between the cost of the inputs and the revenue generated by the outputs. D. relative values of the inputs and modes of production.
If supply is perfectly elastic, the price elasticity of supply is equal to:
A. 1. B. 0. C. infinity. D. a positive number between 0 and infinity.