A more efficient process for refining oil into gasoline is developed. As a result, the market price of gasoline:
a. and the quantity of gasoline purchased both increase
b. increases and the quantity of gasoline purchased falls.
c. decreases and the quantity of gasoline purchased rises.
d. decreases and the demand curve for gasoline shifts to the right.
c
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Perfect price discrimination:
A. eliminates all consumer surplus. B. maximizes producer surplus. C. creates no deadweight loss. D. All of these statements are true.
Describe the short-run situation in U.S. agriculture. What are its causes?
What will be an ideal response?
When Keynes famously said, "In the long run we are all dead", he was trying to make the point that:
A. economic downturns are unavoidable. B. economic downturns will not end unless the government increases spending. C. the short-run impacts of government policies matter. D. the government's response to economic downturns is unimportant.
Use the following graph to answer the next question.
In the diagram, the economy's relevant aggregate demand and long-run aggregate supply curves, respectively, are lines ________.
A. 2 and 4 B. 4 and 1 C. 4 and 2 D. 2 and 3