Suppose you drive a car that gets good gas mileage, and you notice that more and more people are driving gas-guzzling cars. Their increased demand for gas:
A. does not affect you.
B. does not change the price you pay, but it reduces the quantity of gas supplied.
C. is likely to cause the price you pay for gas to decrease.
D. it likely to cause the price you pay for gas to increase.
Answer: D
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a. True b. False Indicate whether the statement is true or false
According to the World Bank, developing countries greatly outnumber industrial countries
a. True b. False Indicate whether the statement is true or false
The demand curve for a firm's product is also the curve showing
a. total revenue. b. marginal revenue. c. average revenue. d. average profits.
As people buy more and more of a service, their consumer surplus
A. increases. B. decreases. C. falls to zero. D. becomes negative.