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:

Course of Action

A plan or strategy that an organization or individual intends to follow to achieve a specific goal.

Alternative

An option or choice that serves as a substitute to a decision or course of action.

Intermediate Product

Goods that are produced and used as inputs in the production of other goods, rather than being sold directly to consumers.

Processed Further

A decision in cost accounting regarding whether or not to continue adding value to a product beyond the split-off point.