Suppose the Demand for Large (And Therefore High-Gasoline Consumption) Cars

question 113

Multiple Choice

Suppose the demand for large (and therefore high-gasoline consumption) cars decreases sharply during an energy crisis. The most likely market adjustment would be

• A) a sharp rise in the price of large cars in the short run as people rush to purchase these vehicles before producers cut back on manufacturing them.
• B) a moderate increase in short-run prices, followed by a larger long-run price increase as the supply of large cars is depleted.
• C) lower short-run prices, which will lead to an expansion in the number of large cars sold.
• D) a decrease in the price of large cars in the short run, leading to a reduction in output, which will moderate the price decline in the long run.

---

Definitions:

Passive Voice

A grammatical voice where the subject of the sentence is acted upon by the verb, oftentimes shifting focus from the doer of the action to the receiver.

Business Writing

A style of writing that is clear, concise, and seeks to convey information or ideas in a professional setting.

Parallel Construction

The use of the same pattern of words to show that two or more ideas have the same level of importance.

Similar Structures

Architectural or organizational elements that share comparable features or organization.