The Demand Curve for Gasoline Has Shifted Rightward

question 58

Multiple Choice

The demand curve for gasoline has shifted rightward. One explanation is that

• A) consumer incomes are lower and gasoline is a normal good.
• B) the price of automobiles is higher and gasoline and automobiles are complements.
• C) consumer incomes are higher and gasoline is a normal good.
• D) the number of consumers has decreased.
• E) everyone expects tomorrow's gasoline price will be lower.

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Definitions:

Domestic Price

The price of goods or services within a country's borders, exclusive of international factors.

World Price

The price at which goods trade on the international market, reflecting the global balance of supply and demand for those goods.

Import

Goods or services that come into a country from abroad for sale.

Consumer Surplus

The difference between the maximum price a consumer is willing to pay for a product and the actual price they do pay.