1- If oil consumers anticipate that the price of gasoline is going to increase next week, then: Ă- the demand for gasoline today will decrease. B- nothing will happen to demand today, but quantity demanded will decrease due to the higher price. C- the demand for gasoline today will increase. D- nothing will happen to demand for gas today because the price isn't expected to change until next week.
1- If oil consumers anticipate that the price of gasoline is going to increase next week, then: Ă- the demand for gasoline today will decrease. B- nothing will happen to demand today, but quantity demanded will decrease due to the higher price. C- the demand for gasoline today will increase. D- nothing will happen to demand for gas today because the price isn't expected to change until next week.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:1- If oil consumers anticipate that the price of
gasoline is going to increase next week, then:
A- the demand for gasoline today will
decrease.
B- nothing will happen to demand today, but
quantity demanded will decrease due to the
higher price.
C- the demand for gasoline today will
increase.
D- nothing will happen to demand for gas
today because the price isn't expected to
change until next week.
2- 'I, Pencil' illustrates that:
A- the market system mobilizes individual
creativity in a way that other systems of
economic organization do not.
B- pencils are superior writing instruments to
pens.
C- centrally-planned economies are able to
produce pencils well.
D- the market system helps to keep Paris
supplied with all of the material goods its
residents need
3-Which of the following best describes the
difference between a decrease in quantity
demanded and a decrease in demand?
A- A decrease in demand is caused by an
increase in price, whereas a decrease in
quantity demanded is caused by a number of
factors, such as an increase in the price of a
complement
B- A decrease in quantity demanded is
caused by an increase in price, whereas a
decrease in demand is caused by a number of
factors, such as a complement becoming
more expensive.
C- There is no difference; both events have
the same underlying causes.
D- There is only ever a decrease in demand
when supply also decreases.
4- Which of the following does not affect
demand for a product?
A- A new subsidy for consuming that product
implemented by the government.
B- The technology used to produce that
product.
C- Consumer expectations about future
prices.
D- The prices of complementary goods.
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