Hurricane Katrina damaged a large portion of oil refining and pipeline capacity in the Gulf coast states. In the market for gasoline
A) the demand curve shifted to the left resulting in a decrease in the equilibrium price.
B) the supply curve shifted to the left resulting in an increase in the equilibrium price.
C) the demand curve shifted to the right resulting in an increase in the equilibrium price.
D) the supply curve shifted to the right resulting in an increase in the equilibrium price.
B
You might also like to view...
Which of the following is NOT a device to reduce transaction costs?
A) shopping centers B) auto dealers located close together C) government prohibitions on advertising D) banks that direct funds from savers to borrowers
Modern bankers
a. expand the money supply by printing currency when they need it. b. decrease the supply of money when they extend additional loans. c. hold only a fraction of their assets in the form of reserves against their deposits. d. can increase their profits by increasing their holdings of excess reserves.