Assume There Is a Reduction in the Shipments of Petroleum

question 69

Multiple Choice

Assume there is a reduction in the shipments of petroleum products due to political tension in the Persian Gulf.In a market economy,which consumers would get the reduced supplies of gas?

• A)The consumers who value gasoline the most and are able to pay for it.
• B)Wealthy consumers.
• C)Lower income consumers.
• D)Who gets the gasoline would be a random process. Those who arrive at the service station first will get the gasoline, regardless what its price is.

---

Definitions:

Typical Firm

A representative entity in an industry or market that reflects the common attributes of businesses within that context.

Short Run

A period in economics where at least one input is fixed, meaning that firms can adjust production levels but not capacity.

Long-Run Average-Total-Cost Curve

A curve that shows the lowest cost at which a firm is able to produce a given level of output in the long run, when all inputs can be varied.

Workers

Individuals engaged in a task or activity, especially in the context of employment, to earn wages or salary.