"A reduction in gasoline prices caused the demand for gasoline to increase. The lower gas prices also led to an increase in demand for large cars, causing their prices to rise." These statements
What will be an ideal response?
contain one error; the lower gasoline prices would cause an increase in the quantity demanded of gasoline, not an increase in demand.
Economics
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A merger between an automobile manufacturer and a maker of automobile tires is an example of a:
A. conglomerate merger. B. horizontal merger. C. vertical merger. D. tying contract.
Economics
When the price of a product rises faster than the inflation rate,
A. Nominal incomes of the consumers of that product rise. B. Real incomes of the consumers of that product fall. C. Nominal incomes of the consumers of that product fall. D. Users of that product have higher real incomes than people who do not consume the product.
Economics