Which of the Following Would Cause an Increase in the Price

question 86

Multiple Choice

Which of the following would cause an increase in the price of gasoline and an expansion in the equilibrium quantity?

• A) an increase in the price of crude oil, a key ingredient required for the production of gasoline
• B) the introduction of a miracle carburetor that substantially improves the gas mileage of automobiles
• C) a recession that substantially reduces the income of households
• D) an increase in the popularity and use of Sport Utility Vehicles that consume a lot of gasoline per mile driven