Suppose the Price of Gasoline Has Recently Increased

question 106

Multiple Choice

Suppose the price of gasoline has recently increased. How will this affect the market for hybrid cars?

• A) The demand for hybrid cars will increase, increasing the equilibrium price and quantity of hybrid cars.
• B) The supply of hybrid cars will increase, decreasing the equilibrium price and increasing the equilibrium quantity of hybrid cars.
• C) The demand for hybrid cars will increase, decreasing the equilibrium price and increasing the equilibrium quantity of hybrid cars.
• D) The demand for and supply of hybrid cars will increase, decreasing the equilibrium quantity, but the effect on price cannot be determined without more information.

---

Definitions:

Landed Gentry

Refers to the class of wealthy landowners in Britain who held significant social status but did not possess titles of nobility.

Republicanism

A political ideology centered around the concept of a republic, where the government is a public matter and the public matters are decided by elected representatives of the population.

Public Life

The aspect of life concerned with public affairs, government, and the communal interests of society, as opposed to private or personal life.

Economic Status

Refers to the financial condition or standing of an individual, group, or area, often evaluated based on income, wealth, and employment.