Other Things Equal, Which of the Following Might Shift the Demand

question 30

Multiple Choice

Other things equal, which of the following might shift the demand curve for gasoline to the left?

• A)the discovery of vast new oil reserves in Alberta
• B)the development of a low-cost electric automobile
• C)an increase in the price of train and air transportation
• D)a large decline in the price of automobiles

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Definitions:

Proprietorships

Types of business organizations owned by a single person, where the owner is personally responsible for the business debts and obligations.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, typically including an income statement, balance sheet, and statement of cash flows.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations, calculated as current assets divided by current liabilities.

Liquidity

The ease with which an asset can be converted into cash without affecting its market price.