In August 2005, hurricane Katrina hit the Gulf States damaging approximately 20 percent of our oil refining capacity. This event
A) resulted in a massive building of new refining capacity which shifted the supply curve of gasoline to the left
B) shifted the supply curve of gasoline to the left thereby raising its price
C) shifted the demand curve of gasoline to the right because less gasoline was available
D) resulted in an inward shift in both the supply curve of gasoline and the demand curve for gasoline because less gasoline was available and, as a result, there was less demand for gasoline
E) resulted in an outward shift in both the supply curve of gasoline and the demand curve for gasoline because less gasoline was available and, as a result, there was less demand for gasoline
Correct Answer:
Verified
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