The Switch to the Use of Ethanol in Gasoline Is

question 40

Multiple Choice

The switch to the use of ethanol in gasoline is driven primarily by its relatively lower price.Assuming a competitive market,what effect would this change have on the equilibrium price and output for gasoline?

• A)Price rises,output falls.
• B)Price falls,output rises.
• C)Price rises,output rises.
• D)Price falls,output falls.

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Definitions:

Incontestability Clause

A clause in insurance policies that makes the policy non-contestable after it has been in force for a certain period, except under certain conditions.

Insurance Policy

A contract between an insurer and a policyholder that defines the claims which the insurer is legally required to pay.

Sale of Real Estate

The process of transferring ownership of property from one party to another, involving legal documentation and financial transactions.

Insurance Company's Agent

An insurance company's agent is an individual authorized to sell and manage insurance policies on behalf of an insurance company.