The U.S. economy is relatively open in terms of economic activity related to international trade

Gasoline and bicycles are substitutes in consumption. Suppose we increase the federal gasoline tax to $1 per gallon. What are the initial changes that result from the tax as these markets adjust to a new general equilibrium?

A) Gasoline price rises, demand for bicycles shift s leftward. B) Gasoline price rises, demand for bicycles shifts rightward. C) Gasoline price rises, move downward along bicycle demand curve. D) Gasoline price rises, move upward along bicycle demand curve.

The third phase of the industrial revolution was largely based on the development of the following products: ____________________________________________.

Fill in the blank(s) with the appropriate word(s).