The government introduced a requirement that all gasoline used in the US must use an increased share of ethanol in the gasoline sold. Consider the market of corn - a commodity which is used in ethanol production. Indicate whether there is a shift in supply (S) or demand (D).
a. Demand
b. Supply
a. Demand
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Consider a firm with the following cost information: ATC = $15, AVC = $12, and MC = $14 . If we know that this firm has decided to produce Q = 20 by following the rule to maximize profits or minimize losses, then the price of the output is
a. $12 b. $14 c. $15 d. $20 e. indeterminate from the information given
Price indexes:
A. let us measure how much real stuff we get for our money. B. allow us to convert nominal measures of output into real measures of output. C. like the CPI or GDP price deflator are used to measure the aggregate price level. D. All of these statements are true.
Explain the demand factor in economic growth.
What will be an ideal response?
Which of the following will cause the demand curve for gasoline to shift leftward?
a. An increase in the price of gasoline b. An increase in the price of cars c. A decrease in the price of gasoline d. A rightward shift of the supply curve of cars e. A leftward shift of the supply curve of gasoline