The market for gasoline in May is in equilibrium, at a market clearing price of $4.50 per gallon. After Memorial Day, the demand curve for gasoline increases, which causes
A) the demand curve for gasoline to shift to the right, creating a shortage at $4.50 per gallon which causes the market clearing price of gasoline to rise.
B) the demand curve for gasoline to shift to the right, creating a shortage at $4.50 per gallon which causes the market clearing price of gasoline to fall.
C) the demand curve for gasoline to shift to the left, creating a shortage at $4.50 per gallon which causes the market clearing price of gasoline to rise.
D) the demand curve for gasoline to shift to the left, creating a shortage at $4.50 per gallon which causes the market clearing price of gasoline to fall.
A
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If the entire Social Security payroll tax were paid by the employers _____
a. the workers would be better off b. labor costs would increase c. the price of all non-labor goods would rise d. the employees after-tax wage would be unaffected
Answer the question based on the following list of factors that are related to the aggregate demand curve.
Which of the above factors best explain the downward slope of aggregate demand curve?
A. 2, 4, and 6
B. 7, 9, and 10
C. 1, 3, and 8
D. 4, 6, and 7