If the Price of Crude Oil Increases and the Number

question 37

Multiple Choice

If the price of crude oil increases and the number of people who own cars falls:

• A) the equilibrium price of gasoline will increase and equilibrium quantity of gasoline will decrease.
• B) the equilibrium price of gasoline will decrease and equilibrium quantity of gasoline will be uncertain.
• C) the equilibrium price of gasoline will be uncertain and equilibrium quantity of gasoline will decrease.
• D) the equilibrium price of gasoline will be uncertain and equilibrium quantity of gasoline will increase.

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Definitions:

Force-Coercion

A strategy or approach that relies on using power, authority, or threats to obtain compliance or achieve objectives.

Direct Forcing

A conflict resolution strategy where one party aims to satisfy its interests regardless of the impact on others.

Prisoners' Dilemma

A situation in game theory in which two individuals acting in their own self-interest do not produce the optimal outcome for either party.