Oil is an input used to produce gasoline.An increase in the price of oil would be represented by:
A) a leftward shift of the supply curve for gasoline.
B) a rightward shift of the supply curve for gasoline.
C) a movement up and to the right along the supply curve for gasoline.
D) a movement down and to the left along the supply curve for gasoline.

Question

Quizplus · Accepted Answer

An increase in the price of oil, which is an input for producing gasoline, would increase the production costs for gasoline. This would decrease the quantity of gasoline supplied at any given price, represented by a leftward shift of the supply curve for gasoline.

Oil Is an Input Used to Produce Gasoline