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Katarina Drives Past the Same Gas Station Every Day

Question 45

Multiple Choice

Katarina drives past the same gas station every day.She realizes that the gas station always changes its prices on Tuesdays but keeps the price steady the rest of the week.On Saturday,Katarina turns on the news and hears a report projecting that the price of gasoline is going to increase.Holding all else constant,what do you think would happen to Katarina's demand for gasoline on Monday?


A) Her demand would shift to the right.
B) Her demand would shift to the left.
C) We would see a movement down on her demand curve but no shift.
D) We would see a movement up on her demand curve but no shift.
E) We would see nothing happen to her demand curve until the price changed on Tuesday.

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