A headline reads "Gasoline Prices Are Higher." A likely explanation for this event would be a(n):
a. Decrease in the supply of gasoline and an increase in the demand for gasoline
b. Increase in the supply of gasoline and a decrease in the demand for gasoline
c. Increase in the demand for and the supply of gasoline
d. Decrease in the demand for and the supply of gasoline
a. Decrease in the supply of gasoline and an increase in the demand for gasoline
You might also like to view...
An increased supply of U.S. dollars on the foreign exchange market, all else equal, will result in an appreciation of the U.S. dollar
Indicate whether the statement is true or false
Which of the following is evidence of a shortage of chocolate?
A) Firms lower the price of chocolate. B) The price of chocolate is raised in order to increase sales. C) The equilibrium price of chocolate falls due to a decrease in demand. D) The quantity of chocolate demanded is greater than the quantity supplied.