If the price of crude oil (an input to the production of gasoline)increases,then we will expect to see

Question

Quizplus · Accepted Answer

An increase in the price of crude oil would lead to an increase in the cost of production for gasoline. As a result, gasoline producers will supply less gasoline, leading to a shift in the supply curve to the left. This will result in a decrease in the quantity of gasoline supplied and an increase in the price of gasoline. Therefore, the correct answer is C, a shift in the supply of gasoline to the left.

If the Price of Crude Oil (An Input to the Production