What effect would a rise in the price of gasoline have on automakers?
A) Automakers would produce more gas-efficient cars.
B) Automakers would decrease the price of gas-efficient vehicles.
C) Automakers would spend more money to market large vehicles.
D) A rise in the price of gasoline would not affect an automaker's supply decisions.

Question

Quizplus · Accepted Answer

If the price of gasoline were to rise, it would increase the demand for gas-efficient cars. Automakers would respond to the market demand by producing more fuel-efficient vehicles to meet the rising demand.

What Effect Would a Rise in the Price of Gasoline