Use the Following to Answer Question(s): Demand and Supply of Gasoline

question 72

Multiple Choice

Use the following to answer question(s) : Demand and Supply of Gasoline

-(Exhibit: Demand and Supply of Gasoline) Given the initial equilibrium of S₁ and D, any price lower than _____________ will create pressure for the price to ________ .

• A) $2.00; fall
• B) $2.50; rise
• C) $3.00; rise
• D) none of the above are true

---

Definitions:

Short-Run Total Cost

The total of all costs, both fixed and variable, involved in the production of goods or services in the short run.

Production Function

This concept describes the relationship between inputs used in production and the resulting output.

Labor

The human effort, whether physical or mental, that is used in the production of goods and services.

Total Cost

Total cost is the sum of all expenses incurred in the production of goods or services, including fixed and variable costs.