Select the graph above that best shows the change in the market specified in the following situation: In the market for gasoline, when the price of oil, which is used to produce gasoline, increases because of reduced production by major oil-producing nations.
Graph A
Graph B
Graph C
Graph D
Graph D
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Which of the following observations is true?
A. In the long run, more costs become variable. B. Fixed costs cannot be completely varied if the time period is sufficiently long. C. Fixed costs arise when some types of inputs can be bought only in big batches. D. Variable costs arise when inputs have a large productive capacity.
If a central bank had to give up its discretion and follow a rule that required it to keep inflation low,
a. the short-run Phillips curve would shift up. b. the short-run Phillips curve would shift down. c. the long-run Phillips curve would shift right. d. the long-run Phillips curve would shift left.
When Acme Dynamite produces 250 units of output, its variable cost is $2,000, and its fixed cost is $500. It sells each unit of output for $25.When Acme Dynamite produces 250 units of output, its average variable cost is ________ and its average total cost is ________.
A. $8; $10 B. $10; $10 C. $10; $2 D. $8; $2
The government's role in limiting smoking in many buildings is justified by considerations of
A. Externalities. B. Inequity. C. Market power. D. Government failure.