Solved

Exhibit 5-6 Refer to Exhibit 5-6

Question 114

Multiple Choice

Exhibit 5-6 Exhibit 5-6   Refer to Exhibit 5-6.Assuming the market for gasoline is initially in equilibrium,what is likely to happen when there is a significant decrease in the price of sport utility vehicles? (Assume that sport utility vehicles get very low gas mileage.)  A)  The market price and quantity of gasoline will both decrease. B)  The market price for gasoline will increase and the quantity demanded will decrease. C)  The market price of gasoline will decrease and the quantity demanded will increase. D)  Both the market price and quantity of gasoline demanded will increase. Refer to Exhibit 5-6.Assuming the market for gasoline is initially in equilibrium,what is likely to happen when there is a significant decrease in the price of sport utility vehicles? (Assume that sport utility vehicles get very low gas mileage.)


A) The market price and quantity of gasoline will both decrease.
B) The market price for gasoline will increase and the quantity demanded will decrease.
C) The market price of gasoline will decrease and the quantity demanded will increase.
D) Both the market price and quantity of gasoline demanded will increase.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents