Crude oil can be refined into home heating oil or gasoline. If very cold weather caused the price of home heating oil to increase then, the
A) supply of gasoline would increase.
B) demand for gasoline would increase.
C) equilibrium price of gasoline would rise.
D) Both answers A and C are correct.
C
Economics
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If a good is a necessity, it has ________ substitutes and its demand is ________
A) poor; elastic B) poor; inelastic C) many; elastic D) many; inelastic E) many; precisely unit elastic
Economics
The Fed can surely reduce the rightward shift of the AD curve, but
a. stock and bond prices may fall dramatically b. inflation may rise sharply c. inflation would change in an unpredictable fashion d. recession may result e. unemployment may fall to below the natural rate
Economics