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Crude Oil Is an Important Input in Producing Gasoline

Question 160

Multiple Choice

Crude oil is an important input in producing gasoline. If the price of crude oil rises, the


A) price of gasoline rises due to increased demand.
B) price of gasoline falls due to increased demand.
C) price of gasoline rises due to decreased supply.
D) equilibrium quantity of gasoline falls due to increased supply.
E) equilibrium quantity of gasoline rises due to increased demand.

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