The Market for Gasoline in May Is in Equilibrium, at a Market

question 80

Multiple Choice

The market for gasoline in May is in equilibrium, at a market clearing price of $4.50 per gallon. After Memorial Day, the demand curve for gasoline increases, which causes

• A)the demand curve for gasoline to shift to the right, creating a shortage at $4.50 per gallon which causes the market clearing price of gasoline to rise.
• B)the demand curve for gasoline to shift to the right, creating a shortage at $4.50 per gallon which causes the market clearing price of gasoline to fall.
• C)the demand curve for gasoline to shift to the left, creating a shortage at $4.50 per gallon which causes the market clearing price of gasoline to rise.
• D)the demand curve for gasoline to shift to the left, creating a shortage at $4.50 per gallon which causes the market clearing price of gasoline to fall.

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Definitions:

Walter Cannon

An influential American physiologist known for his work on the fight-or-flight response and coining the term "homeostasis" for the body's attempt to maintain internal stability.

Feel Sorry

Experiencing regret, guilt, or sadness over an action or situation, often wishing one had acted differently.

Cannon-Bard Theory

A theory of emotion that proposes emotions and physiological responses occur simultaneously, and one does not cause the other.

Schachter and Singer's

Psychologists who proposed the two-factor theory of emotion, suggesting that emotion is based on physiological arousal and cognitive labels.