If the Price of Gasoline Increases Significantly, Then We'd Expect

question 299

Multiple Choice

If the price of gasoline increases significantly, then we'd expect the demand curve for large trucks and SUVs to

• A) shift to the right.
• B) shift to the left.
• C) become upward-sloping.
• D) not shift, but there will be a movement along that demand curve.

---

Definitions:

Balance Sheet

A financial statement that shows the assets, liabilities, and equity of a company at a specific point in time, reflecting its financial position.

Prepaid Insurance

An asset account representing insurance payments made in advance for future coverage periods, recognizing expense over the coverage term.

Current Asset

An asset likely to be converted into cash within a year, used in the normal operations of a business.

Plant Asset

A long-term physical asset that is used as part of a company's operations to help in generating revenues, similar to a fixed asset but specifically related to manufacturing.