A sharp increase in gasoline prices will cause the supply curve for trucking services to shift to the right.

Name: A sharp increase in gasoline prices will cause the supply curve for trucking services to shift to the right.
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Question

Quizplus · Accepted Answer

An increase in gasoline prices would increase the cost of providing trucking services and decrease the profitability of providing those services. This would cause a decrease in the supply of trucking services, shifting the supply curve to the left.

A Sharp Increase in Gasoline Prices Will Cause the Supply