Customers used to pay inside before pumping gas. When gas stations introduced paying at the pump, thus decreasing production costs, there was a shift to the _____ in the _____ curve and _____ pressure on gas prices.

Question

Quizplus · Accepted Answer

When production costs decrease, the supply curve shifts to the right. This means that there is a larger quantity of gas supplied at any given price level. As a result, there is less pressure on gas prices to increase, and prices may even ease. Therefore, choice A is the correct answer.

Customers Used to Pay Inside Before Pumping Gas