assume the government does not fix the price of gasoline. What would happen to the price and quantity if demand also decreased instead of staying the same? a. The price would increase above P2, and the quantity would increase above Q2. b. The price would increase above P2, and the quantity would decrease below Q2. c. The price would decrease below P2, and the quantity would decrease below Q2. d. The price would decrease below P2, and the quantity would increase above Q2
assume the government does not fix the price of gasoline. What would happen to the price and quantity if demand also decreased instead of staying the same? a. The price would increase above P2, and the quantity would increase above Q2. b. The price would increase above P2, and the quantity would decrease below Q2. c. The price would decrease below P2, and the quantity would decrease below Q2. d. The price would decrease below P2, and the quantity would increase above Q2
Chapter7: Uncertainty
Section: Chapter Questions
Problem 7.8P
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Question
Referring to Figure 8, assume the government does not fix the price of gasoline. What would happen to the price and quantity if demand also decreased instead of staying the same?
a.
The price would increase above P2, and the quantity would increase above Q2.
b.
The price would increase above P2, and the quantity would decrease below Q2.
c.
The price would decrease below P2, and the quantity would decrease below Q2.
d.
The price would decrease below P2, and the quantity would increase above Q2.
Transcribed Image Text:Figure 8
Gasoline Market Prediction in the Aftermath of
Hurricane Sandy in 2012
Price
P₂
a
Supply: New
Quantity
Supply: Initial
Demand
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