Figure 3-1 -If the Price of Automobiles Was to Increase, Then

question 117

Multiple Choice

Figure 3-1
-If the price of automobiles was to increase, then

• A) the demand for gasoline would decrease.
• B) the demand for gasoline would increase.
• C) the supply of gasoline would increase.
• D) the quantity demanded of gasoline would decrease.

---

Definitions:

Operating Lease

An operating lease is a leasing agreement that allows the lessee to use an asset temporarily without transferring the risks and rewards of ownership.

Annual Rent Payments

Periodic payments made by a lessee to a lessor, often stipulated in a lease contract, to use a property for a specified term each year.

Insurance Premium

The amount paid periodically to an insurance company in exchange for coverage against specified risks.

Rental Revenue

Income received from leasing out properties or equipment to others.