Crude Oil Is an Important Input in Producing Gasoline

question 193

Multiple Choice

Crude oil is an important input in producing gasoline. If the price of crude oil rises, the

• A) price of gasoline rises due to increased demand.
• B) price of gasoline falls due to increased demand.
• C) price of gasoline rises due to decreased supply.
• D) equilibrium quantity of gasoline falls due to increased supply.
• E) equilibrium quantity of gasoline rises due to increased demand.

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Definitions:

Cognitive Schema

Mental frameworks that help individuals organize and interpret information, influencing perception and understanding of the world.

Proposition

A statement or assertion that expresses a judgment or opinion.

Prototype

An original model on which something is patterned or based.

Mental Image

A representation of sensory information or experiences in one's mind, which does not currently exist in the physical world.