Which of the Following Events Could Shift the Demand Curve

question 85

Multiple Choice

Which of the following events could shift the demand curve for gasoline to the left?

• A)The income of gasoline buyers rises,and gasoline is a normal good.
• B)The income of gasoline buyers falls,and gasoline is an inferior good.
• C)Public service announcements run on television encourage people to walk or ride bicycles instead of driving cars.
• D)The price of gasoline rises.

Comprehend the significance and calculation of average variable costs and their role in maximizing profits.

Grasp the importance of identifying the profit-maximizing price and quantity in various market scenarios.

Recognize the conditions and calculations related to a firm’s shutdown point.

Calculate and evaluate the financial requirements to achieve a desired return on investment in diverse business scenarios.

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Definitions:

Without Controls

a situation where no regulations or restrictions are imposed on the functioning of markets or economies.

Price Ceiling

A government-imposed limit on how high a price is charged for a product, aimed at preventing prices from becoming excessively high.

Inefficiency

The state of not achieving maximum productivity or economic benefit, where resources are not used in the most effective way.

Market

Any structured system or venue where parties engage in exchange of goods, services, or information.