Because of a sharp increase in the price of gasoline, the demand for Sports Utility vehicles (SUVs) has decreased. So, the high price of gasoline leads to a
A) leftward shift of the demand curve for SUVs and the supply curve of SUVs.
B) leftward shift of the demand curve for SUVs and no shift in the supply curve of SUVs.
C) leftward shift of the demand curve for SUVs and a rightward shift of the supply curve of SUVs.
D) leftward shift of the supply curve of SUVs and no shift in the demand curve for SUVs.
E) rightward shift of the supply curve of SUVs and no shift in the demand curve for SUVs.
B
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When comparing perfect competition to a single-price monopoly with the same costs
A) both market types use resources efficiently. B) there is a deadweight loss associated with a monopoly. C) the sum of producer and consumer surplus is maximized under a monopoly. D) the sum of producer and consumer surplus is minimized under perfect competition.
In the four-part diagram used to construct the IS curve, a lower interest rate
A) has no effect on Y. B) has no effect on the position of the demand for autonomous planned spending curve. C) has no effect on the position of the IS curve. D) none of the above.