An expected future increase in the price of gasoline may
A) increase the demand for gasoline now.
B) decrease the demand for gasoline now.
C) increase the supply of gasoline now.
D) make gasoline an inferior good.
A
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Ariel is a Canadian citizen who works in Montreal, Canada and owns a winter home in Palm Beach, Florida. When Ariel spends the winters in Palm Beach, an increase in the value of the Canadian dollar relative to the U.S. dollar should
A) hurt Ariel as it is now more expensive to live in Palm Beach since the Canadian dollar appreciation. B) help Ariel as each Canadian dollar of her salary is now worth more U.S. dollars. C) hurt Ariel as each Canadian dollar of her salary is now worth less U.S. dollars. D) help Ariel as it is now less expensive to live in Canada since the Canadian dollar appreciation.
In the above figure, a shortage could be caused by a government price ceiling set at
A. $2.50. B. $2.00. C. $1.00. D. $3.00.