Gasoline,a Derivative of Oil,is a Large Part of Transportation Costs

question 53

Multiple Choice

Gasoline,a derivative of oil,is a large part of transportation costs for many producers.If the price of oil increases at the same time that incomes fall for many consumers,one would expect the equilibrium price of many normal goods to _____,while their equilibrium quantities would _____.

• A)fall;rise
• B)fall,rise,or stay the same;decrease
• C)decrease;fall,rise,or stay the same
• D)fall;fall

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Definitions:

Sole Proprietorship

A business structure where a single individual owns, operates, and is responsible for all aspects of the business, including liabilities.