If the price of gasoline rises at the Exxon gas station at a busy intersection, the Mobil station at the same intersection will experience
a. an outward shift of the demand curve it faces
b. an inward shift of the demand curve it faces
c. a rightward movement along the same demand curve it faces
d. a leftward movement along the same demand curve it faces
e. neither a shift in nor a movement along the demand curve it faces
A
You might also like to view...
Despite the outlays by the federal and state governments, many observers believe which of the following is true?
A. Public infrastructure, such as bridges and roads, is only adequate. B. Our educational system is lacking. C. Too little is spent on homeland defense. D. All of these are correct.
Keynes believed that unstable investment caused the Great Depression. Using the simple Keynesian model, explain how a fall in investment affects equilibrium output
What will be an ideal response?
Explain why the equilibrium price is called the market clearing price
What will be an ideal response?
Refer to Figure 16-1. Suppose the economy is in short-run equilibrium below potential GDP and Congress and the president lower taxes to move the economy back to long-run equilibrium. Using the static AD-AS model in the figure above, this would be depicted as a movement from
A) A to B. B) C to B. C) A to E. D) B to A. E) B to C.