Use the Following to Answer Questions

question 169

Multiple Choice

Use the following to answer questions:
Figure: Demand and Supply of Gasoline
-(Figure: Demand and Supply of Gasoline) Look at the figure Demand and Supply of Gasoline. When the supply curve shifted from the initial equilibrium, the new intersection of supply and demand has a price of _____ and quantity of 400. This supply shift could have resulted from _____.

• A)$1.50; an increase in consumers' income
• B)$1.50; an improvement in refining technology
• C)$2.00; an increase in the number of buyers
• D)$2.00; an increase in consumers' income

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Definitions:

Pricing Objectives

The goals that a company aims to achieve through its pricing strategy, such as maximizing profit, increasing market share, or achieving a competitive advantage.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, often influencing pricing strategies in economics and marketing.

Profit Maximization

The process or strategy of adjusting the production and sale of goods or services to achieve the highest possible profit.

Material Charges

Fees associated with the cost of raw materials or goods used in the production of products or services.