Examlex

Solved

Assume That the Price of Gasoline Triples

question 45

Multiple Choice

Assume that the price of gasoline triples.What will likely happen to the demand for fuel-efficient small cars? The demand curve will shift to the _____ and demand will _____.


Definitions:

Fixed Factors

Resources in production that cannot be easily increased or decreased in the short term, such as land or certain machinery.

Capital-Intensive

A characteristic of industries or businesses that require large amounts of capital investment in machinery and equipment relative to labor to produce goods or services.

Firm Costs

All the expenses incurred by a company in the production and sale of goods or services, including raw materials, labor, and overhead.

Related Questions