When gasoline prices fall, the demand for alternative fuel cars likely:
A. falls, raising their equilibrium price and lowering equilibrium quantity.
B. falls, lowering their equilibrium price and raising equilibrium quantity.
C. rises, raising their equilibrium price and quantity.
D. falls, lowering their equilibrium price and quantity.
Answer: D
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Refer to the table above. For trade to occur along the lines of comparative advantage, wages in A relative to wages in B (measured in the same currency)
A) must be at least twice but less than 3 times as great. B) must be less than three times as small. C) must be greater than $2 but less than $3. D) Need more information to answer.
Which of the following variables will shift the classical aggregate demand curve?
a. An increase in government spending b. A decrease in taxes c. An increase in autonomous investment expenditures d. An increase in the money stock e. All of the above
Businesses keep inventories in order to: a. meet a certain level of expected sales. b. keep prices up artificially
c. decrease their fixed cost of production. d. benefit from economies of scale.
What might cause economies of scale?