Supply and demand analysis suggests that a sharp increase in the price of gasoline will cause the
a. price of fuel-efficient compact cars to decrease.
b. supply of gasoline to decrease.
c. demand for large luxury cars to increase.
d. demand for fuel-efficient cars to increase.
D
You might also like to view...
A deadweight loss is a consequence of a tax on a good because the tax
a. induces the government to increase its expenditures. b. induces buyers to consume less, and sellers to produce less. c. increases the equilibrium price in the market. d. imposes a loss on buyers that is greater than the loss to sellers.
Assume the price of product Y (the quantity of which is on the vertical axis) is $15 and the price of product X (the quantity of which is on the horizontal axis) is $3. Also assume that money income is $60. The absolute value of the slope of the
resulting budget line: A. is 5. B. is 1/5. C. is 4. D. is 20.