7/30/2017 4:16 PM

-Refer to Situation 4-1.An economist would have most likely predicted that the oil embargo imposed in 1974 would result in a
A) leftward shift in the supply (curve)of gasoline.
B) rightward shift in the supply (curve)of gasoline.
C) leftward shift in the demand (curve)for gasoline.
D) rightward shift in the demand (curve)for gasoline.
E) both a and d

Question

7/30/2017 4:16 PM
 
-Refer to Situation 4-1.An economist would have most likely predicted that the oil embargo imposed in 1974 would result in a
A) leftward shift in the supply (curve)of gasoline. 
B) rightward shift in the supply (curve)of gasoline. 
C) leftward shift in the demand (curve)for gasoline. 
D) rightward shift in the demand (curve)for gasoline. 
E) both a and d

Quizplus · Accepted Answer

The oil embargo resulted in a decrease in the supply of oil, which is a major input in the production of gasoline. This would lead to a leftward shift in the supply curve of gasoline, resulting in higher prices and lower quantities demanded.

7/30/2017 4:16 PM -Refer to Situation 4-1.An Economist Would Have Most Likely Predicted