"The world gasoline market is rigged. Look, we just saw a 5% decrease in the supply of oil and the price of gas shot up 50%, there is no way that can happen if the price were determined by supply and demand." Which of the following best explains why the quotation above is wrong. O a. This can happen if simultaneously there is a decrease in the demand for gasoline O b. There are lots of taxes on oil that make the price very different for suppliers than consumers O'c. A small decrease in quantity can cause a large increase in price if demand is very inelastic O d. This can happen if there is an externality in the market QUESTION 27 A good that is non-rival and non-excludable is called a O a. club good O b.common resource O C. public good o d. private good
"The world gasoline market is rigged. Look, we just saw a 5% decrease in the supply of oil and the price of gas shot up 50%, there is no way that can happen if the price were determined by supply and demand." Which of the following best explains why the quotation above is wrong. O a. This can happen if simultaneously there is a decrease in the demand for gasoline O b. There are lots of taxes on oil that make the price very different for suppliers than consumers O'c. A small decrease in quantity can cause a large increase in price if demand is very inelastic O d. This can happen if there is an externality in the market QUESTION 27 A good that is non-rival and non-excludable is called a O a. club good O b.common resource O C. public good o d. private good
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
#26 & #27 please answer both parts
![QUESTION 26
"The world gasoline market is rigged. Look, we just saw a 5% decrease in the supply of oil and the price of gas shot up 50%, there is no way that can
happen if the price were determined by supply and demand." Which of the following best explains why the quotation above is wrong.
O a. This can happen if simultaneously there is a decrease in the demand for gasoline
O b. There are lots of taxes on oil that make the price very different for suppliers than consumers
O'c. A small decrease in quantity can cause a large increase in price if demand is very inelastic
O d. This can happen if there is an externality in the market
QUESTION 27
A good that is non-rival and non-excludable is called a
O a. club good
O b.common resource
O c. public good
O d.private good](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0d2c1d95-9edd-42ca-b00e-7090e772de14%2F1e2a5c7d-26ac-49ab-963a-79fbd7238066%2Fvdh701l_processed.jpeg&w=3840&q=75)
Transcribed Image Text:QUESTION 26
"The world gasoline market is rigged. Look, we just saw a 5% decrease in the supply of oil and the price of gas shot up 50%, there is no way that can
happen if the price were determined by supply and demand." Which of the following best explains why the quotation above is wrong.
O a. This can happen if simultaneously there is a decrease in the demand for gasoline
O b. There are lots of taxes on oil that make the price very different for suppliers than consumers
O'c. A small decrease in quantity can cause a large increase in price if demand is very inelastic
O d. This can happen if there is an externality in the market
QUESTION 27
A good that is non-rival and non-excludable is called a
O a. club good
O b.common resource
O c. public good
O d.private good
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
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.Recommended textbooks for you
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education