The Market for Gasoline in May Is in Equilibrium, at a Market

question 80

Multiple Choice

The market for gasoline in May is in equilibrium, at a market clearing price of $4.50 per gallon. After Memorial Day, the demand curve for gasoline increases, which causes

• A)the demand curve for gasoline to shift to the right, creating a shortage at $4.50 per gallon which causes the market clearing price of gasoline to rise.
• B)the demand curve for gasoline to shift to the right, creating a shortage at $4.50 per gallon which causes the market clearing price of gasoline to fall.
• C)the demand curve for gasoline to shift to the left, creating a shortage at $4.50 per gallon which causes the market clearing price of gasoline to rise.
• D)the demand curve for gasoline to shift to the left, creating a shortage at $4.50 per gallon which causes the market clearing price of gasoline to fall.

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Definitions:

Adolescence

The transitional stage of physical and psychological development that typically occurs during the period from puberty to legal adulthood.

Social Situations

Contexts involving interaction between individuals, often requiring communication, cooperation, or competition.

Authoritative

Commanding and self-assured; often associated with someone who possesses a great deal of knowledge or expertise.

Permissive

Describes a parenting or authority style that is lenient, allowing considerable freedom and few restrictions.