-The Table Above Shows the Situation in the Gasoline Market

question 200

Multiple Choice

-The table above shows the situation in the gasoline market in Tulsa,Oklahoma.If the price of a gallon of gasoline is $3.65,then

• A) there is a surplus of gasoline in Tulsa.
• B) there is a shortage of gasoline in Tulsa.
• C) the gasoline market in Tulsa is in equilibrium.
• D) without more information we cannot determine if there is a surplus, a shortage, or an equilibrium in the gasoline market in Tulsa.
• E) there is neither a surplus nor a shortage, but the market is NOT in equilibrium.

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Definitions:

Budgeted Sales

Forecasted sales revenue a company expects to earn in a specific period, based on historical data, market analysis, and economic trends.

Raw Material Purchases

The total cost of raw materials bought by a company for use in production over a specific period.

Cash Out

The act of disbursing or spending cash, typically resulting in a decrease in the cash balance of a business or individual.

Raw Materials

The basic materials that are used in the production process of goods, prior to being processed or transformed.