Use the Following to Answer Question(s): Demand and Supply-Determinants

question 214

Multiple Choice

Use the following to answer question(s) : Demand and Supply-Determinants

-(Exhibit: Demand and Supply-Determinants) The exhibit shows how supply and demand might shift in response to specific events.Suppose the technology for producing automotive gasoline improves.Which panel best describes how this will affect the market for automotive gasoline?

• A) Panel (a)
• B) Panel (b)
• C) Panel (c)
• D) Panel (d)

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Definitions:

Foreign Trade Sector

The segment of an economy's market dealing with the exchange of goods and services across international borders.

Trade Deficit

A condition where a nation's incoming goods and services are greater than what it sends out.

Domestic Goods Output

The total quantity of goods and services produced within a country's borders, reflecting its domestic economic activity.

Self-sufficient Economy

An economy that relies on its own production of goods and services, minimizing dependence on external supplies and trade.