Scenario 10-1 The Demand Curve for Gasoline Slopes Downward and the Supply

question 156

Multiple Choice

Scenario 10-1
The demand curve for gasoline slopes downward and the supply curve for gasoline slopes upward. The production of the 1,000^th gallon of gasoline entails the following:
-a private cost of $3.10;
-a social cost of $3.55;
-a value to consumers of $3.70.
-Refer to Scenario 10-1. Suppose the equilibrium quantity of gasoline is 1,150 gallons; that is, QMARKET = 1,150. Then the equilibrium price of a gallon could be

• A) $2.80.
• B) $3.00.
• C) $3.30.
• D) $3.80.

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Definitions:

Motives

Internal driving forces that compel individuals to act or behave in certain ways, often based on needs and desires.

Observational Learning

The process of acquiring new behaviors or information by watching and imitating others.

High Fever

A condition characterized by an abnormally high body temperature, often indicating an underlying illness or infection.

Falls Asleep

Refers to the transition from wakefulness into sleep, a natural part of the human circadian rhythm.