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:
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John argues that when the price of a good decreases, people will purchase less of the good. This statement is
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