Assume we are looking at the gasoline market. How would a major increase in the supply of oil worldwide affect this market? Demand increases..a shortage developes..price declines..lower prices prevail Demand decreases..a surplus developes..price declines..lower prices prevail Supply increases..A surplus developes..price decreases..lower prices prevail Supply decreases..A shortage developes..price increases..higher prices prevail

Assume we are looking at the gasoline market. How would a major increase in the supply of oil worldwide affect this market? Demand increases..a shortage developes..price declines..lower prices prevail Demand decreases..a surplus developes..price declines..lower prices prevail Supply increases..A surplus developes..price decreases..lower prices prevail Supply decreases..A shortage developes..price increases..higher prices prevail

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Assume we are looking at the gasoline market. How would a major increase in the supply of oil worldwide affect this market?

Demand increases..a shortage developes..price declines..lower prices prevail

Demand decreases..a surplus developes..price declines..lower prices prevail

Supply increases..A surplus developes..price decreases..lower prices prevail

Supply decreases..A shortage developes..price increases..higher prices prevail

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