Consider the market for gas. Which of the following changes would most likely lead to a decrease in supply? An increase in the price of petrol cars. Price of gas (complement in supply with petrol) increases. The cost of ol refinery increases. Both a and b are correct. Both b and c are correct

Consider the market for gas. Which of the following changes would most likely lead to a decrease in supply? An increase in the price of petrol cars. Price of gas (complement in supply with petrol) increases. The cost of ol refinery increases. Both a and b are correct. Both b and c are correct

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter8: Understanding Markets And Industry Changes

Section: Chapter Questions

Problem 3MC

See similar textbooks

Related questions

Q: Can someone answer more of the questions?

A: Disclaimer- “Since you have asked multiple question, we will solve the last three question of 1st…

Q: The solution provided does not match the one on top, how do you actually solve it?

A: Inverse Demand Function is given as ;- P(Q)=845-2Q ; Total output Q=q1+q2 There are two firms…

Q: What roles do planning systems play?

A: The planning system is responsible for the administration, control, and regulation of development in…

Q: Factors of production

A: The final goods and services served in the market for the consumers. There are some factors that use…

Q: How can economic changes affect society?

A: Economic changes can affect the society in various ways: 1. The cost of living has the significant…

Q: Is economic is one of the most important thing in the world

A: Economics: Economics is the sociology that reviews how individuals communicate with esteem;…

Q: what is economics

A: Answer to the question is as follows :

Q: what product would people around the world demand more of during tough economic times, and more…

A: During recession, people spend their incomes on higher education. According to the UNESCO, student…

Q: How can clothing industry be economic sustainable?

A: The clothing industry can be made sustainable if the following points are kept in mind :

Q: how macrosystematics work

A: Macro systematics is a hedge or mutual fund strategy on the basis of their holdings in a portfolio…

Question

Solve this economic

Consider the market for gas. Which of the following changes would most likely lead to a decrease in
supply?
An increase in the price of petrol cars.
Price of gas (complement in supply with petrol) increases.
The cost of oll refinery increases.
Both a and b are correct.
Both b and c are correct

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

If demand falls as a result of a change in tastes, it is likely that as a result: Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a price will fall and then demand will increase. b price will fall and then demand will not change. c price will rise and then demand will not change. d price will rise and then demand will decrease.
Grocery stores utilize elther cashiers or self-checkout machines, substitute resources, when customers are ready to complete their transactions. A wage increase for cashiers will result in
Average visits per week equal 640 when the copayment is $40 and 360 when the copayment rises to $60. Calculate the percentage change in visits, percentage change in price, and price elasticity of demand.
The computer market in recent years has seen many more computers sell at much lower prices.What shift in demand and supply is most likely to explain this outcome? OPTIONS: (i) a rise in demand. (ii) a fall in demand. (iii) a rise in supply. (iv) a fall in supply.
The table below shows part of the aggregate demand schedule for smart phones in the country of Afluentia: Quantity demanded Price P QD $900 10,000 $700 14,000 i. Plot the demand curve for smart phones in Afluentia. Assume demand is linear. Calculate the price elasticity of demand when the price increases from $700 to $900 using the midpoint method. Make your calculations explicit. ii. All else being the same, what is Afluentia's total expenditure on smart phones when the price is $700? And when the price is $900? All else being the same, should Afluentia's suppliers charge $700 or $900 for a smart phone? Why? Explain briefly; show graphically and make your calculations explicit. iii. Now suppose younger people start also buying smart phones in Afluentia. This means 1,000 more smart phones are bought at any given price. As price increases from $700 to $900, is the price elasticity of aggregate demand now greater than, less than, or the same as it was in part (i)? Why? Explain briefly.…
Which of the following statements is true? a. A company can manipulate uncontrollable factors to increase the demand for its product b. A company can manipulate uncontrollable factors to increase the supply of its product c. A company cannot manipulate uncontrollable factors to increase the demand for its product d. A company cannot manipulate controllable factors to increase the demand for its product
if the demand for a good is extremely inelastic, a large increase in the cost of supplying it will a) raise it's priced very little, but increase the total dollar spent to purchase it b) raise its price very little and decrease the total dollar spent to purchase it c) raise its price substantially and increase the total dollar spent to purchase it d) raise its price substantially, but decrease the total dollar spent to purchase it
What is the correct solution?
Term used to describe demand that can be accuratelycalculated to meet the need of a production schedule,for example.
Milk purchased by a tea stall is a intermediate good. True/False
If both supply and demand decrease, the equilibrium price A) does not change. B) cannot be predicted. C) rises. D) falls.
Which of the following does NOT increase the supply of personal computers, that is, does NOT shift the supply curve of personal computers? A) a change in the expected future price of a personal computer B) an advance in the technology used to produce personal computers C) a fall in the cost of the components used to assemble personal computers D) an increase in the number of firms producing personal computer E) a rise the price of a personal computer