According to the above figure for a gasoline market, an increase in the price from $2 to $4 will result in
A) a shortage of 30 million gallons.
B) an increase in quantity demanded of 10 million gallons.
C) an increase in quantity supplied of 20 million gallons.
D) an increase in demand of 20 million gallons.
C
Economics
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To eliminate losses in a perfectly competitive market, firms exit the industry. This exit results in
A) an increase in market supply. B) a decrease in market supply. C) an increase in market demand. D) a decrease in market demand. E) a decrease in both the market supply and the market demand.
Economics
Refer to Figure 7-5. With insurance and a third-party payer system, the equilibrium quantity of medical services is
A) 400. B) 800. C) 1,200. D) > 1,200.
Economics