Which of the following increases the supply of gasoline?
A) a situation where the quantity of gasoline demanded exceeds the quantity supplied
B) an increase in the price of gasoline
C) a decrease in the price of a resource used to produce gasoline, such as crude oil
D) a decrease in the demand for gas-guzzling, sport utility vehicles
E) an increase in income if gas-guzzling, sport utility vehicles are a normal good

Question

Quizplus · Accepted Answer

A decrease in the price of a resource used to produce gasoline, such as crude oil, would lower the cost of production for gasoline, leading to an increase in the supply of gasoline. The other options would either have no effect on the supply or decrease the demand for gasoline.

Which of the Following Increases the Supply of Gasoline