A small town in West Texas has one gas station. If the price of oil increases, the price of gas that the station charges will most likely
a. increase
b. decrease.
c. remains the same.
d. may increase or decrease.
a
You might also like to view...
Governments can eliminate market surpluses through the imposition of price floors.
Answer the following statement true (T) or false (F)
If firms in an oligopolistic industry successfully collude and form a cartel, what price and output will result?
A) the monopoly price and output B) the competitive price and output C) the monopolistically competitive price and output D) a price higher than the monopoly price and, because there is more than one firm in the industry, more output than the monopoly amount E) a price lower than the competitive price and, because there are only a few firms in the industry, less output than the competitive amount
Economists ________ that price controls are desirable
A) are reluctant to state B) never believe C) only recently agree D) are in agreement
The risk premium is
A) the amount by which the expected return on a risky asset exceeds the return on an otherwise comparable safe asset. B) a measure of the riskiness of the overall economy in a domestic country compared with a foreign country. C) the amount an investor must pay to insure his or her stock portfolio to protect against a fall in value. D) the amount an investment bank charges to guarantee an annuity that pays a fixed rate of return in the future.