As a result of increased tensions in the Middle East, oil production is down by 1.21 million barrels per day—a 5 percent reduction in the world’s supply of crude oil. Explain the likely impact of this event on the market for gasoline and the market for small cars.
What will be an ideal response?
Answer: The market for gasoline would increase as the world supply of oil is down due to increased tension in the middle east. People will rely more on alternate sources of fuel for running cars and they will depend more on gas fuel. Gasoline fits the bill for it.
The market for small cars would increase as small cares consume less petrol then big cars
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The cost of the resources used by domestic producer groups including the lobbying fees, propaganda, and legal restrictions, is collectively referred to as the cost of:
a. enforcement and implementation. b. rent seeking. c. retaliation. d. collective action.
John argues that when the price of a good decreases, people will purchase less of the good. This statement is
A) consistent with the law of demand. B) inconsistent with the law of demand. C) referring to money prices. D) consistent with the law of supply.
If improvements in technology have reduced the cost of producing personal computers, you accurately predict that in the market for personal computers, there will be a(n)
A. increase in the quantity supplied of personal computers, a reduction in the price, and an increase in the quantity demanded. B. increase in the supply of personal computers, a reduction in the price, and an increase in the demand. C. increase in the supply of personal computers, a decrease in the price, and an increase in the quantity demanded. D. decrease in the supply of personal computers, an increase in the price, and a decrease in the demand.
In a three-player game, each player must have three choices
Indicate whether the statement is true or false