Explain what would happen to the equilibrium price and quantity of gasoline if the supply of gasoline decreased while the demand for gasoline also decreased
What will be an ideal response?
Equilibrium quantity would decrease. Equilibrium price would depend on which change was larger. If the supply decrease was larger than the demand decrease, equilibrium price would increase. If the demand decrease was larger than the supply decrease, equilibrium price would decrease.
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Suppose the president is successful in passing a $10 billion tax increase. Assume that taxes are fixed, the economy is closed, and the marginal propensity to consume is 0.8. What happens to equilibrium GDP?
A) There is a $50 billion increase in equilibrium GDP. B) There is a $40 billion increase in equilibrium GDP. C) There is a $40 billion decrease in equilibrium GDP. D) There is a $50 billion decrease in equilibrium GDP.
The question of how people's behavior changes in response to taxes:
A. has been studied and is well known today. B. is the subject of much research. C. was generally accepted and has recently come under examination again. D. None of these statements is true.
A union is a type of cartel
a. True b. False Indicate whether the statement is true or false
Oil producers expect that oil prices next year will be lower than oil prices this year. As a result, oil producers are most likely to
A) place more oil on the market this year, thus shifting the present supply curve of oil rightward. B) hold some oil off the market this year, thus shifting the present supply curve of oil leftward. C) place more oil on the market this year, thus increasing the quantity supplied of oil at lower but not higher prices. D) hold some oil off the market this year, thus decreasing the quantity supplied of oil at lower but not higher prices.