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Customers Used to Pay Inside Before Pumping Gas

question 7

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Customers used to pay inside before pumping gas.When gas stations introduced paying at the pump,thus decreasing production costs,there was a shift to the _____ in the _____ curve and gas prices _____.


Definitions:

Equal Marginal Principle

The principle stating that optimal allocation occurs when the marginal benefits from allocation of resources to different uses are equalized.

MRS

An abbreviation for Marginal Rate of Substitution, which is the rate at which a consumer is willing to exchange quantities of one good for another while maintaining the same level of utility.

Price Ratio

The proportionate comparison or ratio of the prices of two different goods or services.

Family and Medical Leave Act

A U.S. federal law that provides eligible employees with unpaid, job-protected leave for specified family and medical reasons.

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