A recent news story reported that OPEC is expected to decrease the supply of oil next summer. Summer is traditionally a time of increased demand for oil because of the many families driving and flying to vacation sites. What would be the combined effect of these two activities on the summer market for gasoline? Question 17Answer a. An increase in the equilibrium price and the quantity. b. An indeterminate change in both the equilibrium price and the quantity. c. An increase in the equilibrium price and an indeterminate change in the equilibrium quantity. d. An indeterminate change in the equilibrium price and a decrease in the equilibrium quantity.
A recent news story reported that OPEC is expected to decrease the supply of oil next summer. Summer is traditionally a time of increased demand for oil because of the many families driving and flying to vacation sites. What would be the combined effect of these two activities on the summer market for gasoline? Question 17Answer a. An increase in the equilibrium price and the quantity. b. An indeterminate change in both the equilibrium price and the quantity. c. An increase in the equilibrium price and an indeterminate change in the equilibrium quantity. d. An indeterminate change in the equilibrium price and a decrease in the equilibrium quantity.
Chapter4: Markets In Action
Section: Chapter Questions
Problem 6SQ
Related questions
Question
A recent news story reported that OPEC is expected to decrease the supply of oil next summer. Summer is traditionally a time of increased demand for oil because of the many families driving and flying to vacation sites. What would be the combined effect of these two activities on the summer market for gasoline?
Question 17Answer
a.
An increase in the equilibrium price and the quantity.
b.
An indeterminate change in both the equilibrium price and the quantity.
c.
An increase in the equilibrium price and an indeterminate change in the equilibrium quantity.
d.
An indeterminate change in the equilibrium price and a decrease in the equilibrium quantity.
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