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NEW QUESTION: 1
An increase in the price of crude oil will have what affect on the equilibrium price and quantity of gasoline?
A. Price will rise and quantity will rise.
B. Price will fall and quantity will fall.
C. Price will rise and quantity will fall.
D. Price will fall and quantity will rise.
Answer: C
Explanation:
Choice "b" is correct. Crude oil is an input to the production of gasoline. When the price of an input
increases, supply shifts left, causing equilibrium price to rise and equilibrium quantity to fall.
Choice "a" is incorrect, since price will rise and quantity will fall.
Choice "c" is incorrect, since price will rise.
Choice "d" is incorrect, since quantity will fall.
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A. ISO 27004
B. ISO 27002
C. ISO 27001
D. ISO 27005
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