What Happens in the Gasoline Market If the Price of Automobiles

question 121

Multiple Choice

What happens in the gasoline market if the price of automobiles falls?

• A) The demand for gasoline increases.
• B) The demand for gasoline decreases.
• C) The supply of gasoline increases.
• D) The demand and supply of gasoline increase.

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Definitions:

Guarantor

An individual or entity that agrees to be responsible for another's debt or performance under a contract if the primary party does not meet their obligations.

Guaranty Contract

A legal agreement where a guarantor agrees to fulfill the financial obligations of a debtor to a lender, in case the debtor fails to do so.

Suretyship Contract

An agreement whereby a party (surety) guarantees the performance of an obligation by another party (principal) to a third party (obligee).

Primarily Liable

The main party responsible for fulfilling an obligation or settling a debt in legal or financial contexts.