If the Price of Oil Increases Significantly, Buyers and Sellers

question 235

Multiple Choice

If the price of oil increases significantly, buyers and sellers of gasoline will both expect the price of gasoline to also increase. If sellers of gasoline act on their expectations more than the buyers do, then

• A) the equilibrium price of gasoline will increase, while the equilibrium quantity will decrease.
• B) the equilibrium price of gasoline will increase, while the equilibrium quantity will increase.
• C) the equilibrium price of gasoline will decrease, while the equilibrium quantity will decrease.
• D) the equilibrium price of gasoline will decrease, while the equilibrium quantity will increase.

---

Definitions:

Open Mind

The willingness to consider new ideas, perspectives, and experiences without prejudice.

New Ideas System

A framework or process for generating, capturing, and evaluating innovative concepts within an organization or group.

Benchmarking

The practice of comparing a company's processes and performance metrics to industry bests or best practices from other companies.

Leadership Performance

The effectiveness and outcomes of a leader's actions in guiding and influencing a group towards achieving its objectives.