The law of supply tells us that other things remaining the same, as the:
a) cost of producing gasoline increases, the price of gasoline rises.
b) price of gasoline falls, the quantity of gasoline supplied decreases.
c) supply of gasoline increases, the price of gasoline falls.
d) cost of producing gasoline falls, the supply of gasoline will increase.
e) price of gasoline rises, the quantity of gasoline supplied decreases.
Answer: b) price of gasoline falls, the quantity of gasoline supplied decreases.
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With respect to redistribution, one reason "The Big Tradeoff" exists is because
A) government programs employ resources that could have been productive elsewhere. B) government policymakers must choose between funding the various programs. C) government programs only employ resources that had no value to society otherwise. D) government programs only pay workers their opportunity cost.
Job search
a. is one reason economies always experience some unemployment. b. is the process of matching workers with appropriate jobs. c. would not be a problem if all workers and all jobs were the same. d. All of the above are correct.
According to the structural stagnation hypothesis, what is the long-run cause of the recent problems facing the United States?
A. Globalization B. Unemployment C. Too-low investment D. Inflation
Implicit costs are
A. costs that are taken into consideration by accountants. B. the opportunity costs of using factors that a producer does not buy or hire but already owns. C. the costs of using factors that a producer hires or rents. D. costs that are variable in the short run and fixed in the long run.