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:

Pluralist Theory

Refers to a theory in political science and sociology which suggests that power in a society is distributed among multiple groups and that this multiplicity ensures that no single group achieves dominance.

Elite Theory

A theory suggesting that societies are divided between a small ruling elite that holds power and the masses who are controlled by them.

Voter Turnout

The percentage of eligible voters who cast a ballot in an election, used to measure political engagement and participation.

Rich Democracy

A term describing democratic nations that possess a high level of economic wealth and standards of living.