In August 2005, hurricane Katrina hit the Gulf States damaging approximately 20 percent of our oil refining capacity. This event
a. resulted in a massive building of new refining capacity which shifted the supply curve of gasoline to the left
b. shifted the supply curve of gasoline to the left thereby raising its price
c. shifted the demand curve of gasoline to the right because less gasoline was available
d. resulted in an inward shift in both the supply curve of gasoline and the demand curve for gasoline because less gasoline was available and, as a result, there was less demand for gasoline
e. resulted in an outward shift in both the supply curve of gasoline and the demand curve for gasoline because less gasoline was available and, as a result, there was less demand for gasoline
B
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If shoes rise in price, the demand curve for shoes ________ and the quantity of shoes demanded ________
A) shifts leftward; decreases B) shifts leftward; does not change C) does not shift; decreases D) does not shift; does not change
Which of the following is TRUE?
A. APC - APS = 1 B. APC + MPS = 1 C. 1 + APC = APS D. APC + APS = 1
Currency traders expect the dollar to depreciate. What impact will this have on equilibrium in the foreign exchange market?
A) The dollar will appreciate, and the equilibrium quantity of dollars will decrease. B) The dollar will depreciate, and the equilibrium quantity of dollars exchanged will decrease. C) The dollar will appreciate, and the equilibrium quantity of dollars will increase. D) The dollar will depreciate, and the change in the equilibrium quantity of dollars exchanged cannot be determined.
The demand for a good is elastic. Which of the following would be the most likely explanation for this?
A. The time interval considered is long. B. The good costs a small portion of one's total income. C. The good is broadly defined. D. The good is a necessity.