The law of supply tells us that other things remaining the same, as the:
a) cost of producing gasoline increases, the price of gasoline rises.
b) price of gasoline falls, the quantity of gasoline supplied decreases.
c) supply of gasoline increases, the price of gasoline falls.
d) cost of producing gasoline falls, the supply of gasoline will increase.
e) price of gasoline rises, the quantity of gasoline supplied decreases.
Answer: b) price of gasoline falls, the quantity of gasoline supplied decreases.
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By raising the discount rate, the Fed leads banks to make ______ loans to households and firms, which will _________ checking account deposits and the money supply
A. More; decrease B. Fewer; decrease C. Fewer; increase
In Figure 3-7 above, when autonomous planned spending is $250, the equilibrium income level is
A) $1000. B) $1250. C) $1500. D) $2500.