Because of the High Cost of Fuel,railroads Such as Union

question 102

Multiple Choice

Because of the high cost of fuel,railroads such as Union Pacific Corp and CSX Corp have increased the price they charge to haul freight.This change means that

• A) the demand curve for hauling freight has shifted leftward.
• B) the supply curve for hauling freight has shifted leftward.
• C) the demand curve for hauling freight has shifted rightward.
• D) the supply curve for hauling freight has shifted rightward.
• E) neither the supply curve nor the demand curve for hauling freight has shifted; the only change is that the price is higher.

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Definitions:

Long-Run Equilibrium

A state in which supply and demand are balanced, and all firms in the industry are earning normal profits in the long term.

Short-Run Equilibria

A market condition where supply and demand are balanced, but only temporarily as external factors can soon alter this balance.

Demand Increases

A situation where the quantity of a good or service that consumers are willing and able to purchase at a given price rises.

Competitive Market

A market structure characterized by a large number of buyers and sellers, where no single entity has the power to significantly influence market prices.