(Figure: Demand and Supply of Gasoline) Use Figure: Demand and Supply of Gasoline.Given the initial equilibrium of S₁ and D,any price lower than _ will exert pressure for the price to _.

A) $2.00;fall
B) $2.50;rise
C) $3.00;rise
D) $2.50;fall

Question

(Figure: Demand and Supply of Gasoline) Use Figure: Demand and Supply of Gasoline.Given the initial equilibrium of S₁ and D,any price lower than _____ will exert pressure for the price to _____.

A) $2.00;fall
B) $2.50;rise
C) $3.00;rise
D) $2.50;fall

Zybrea Knight · Accepted Answer

Final Answer : B, Explanation :  At any price lower than $2.50, the quantity demanded exceeds the quantity supplied, creating a shortage. This shortage puts upward pressure on the price, causing it to rise.

(Figure: Demand and Supply of Gasoline) Use Figure: Demand and Supply of Gasoline.Given the initial equilibrium of S₁ and D,any price lower than _ will exert pressure for the price to _.

A) $2.00;fall
B) $2.50;rise
C) $3.00;rise
D) $2.50;fall

Definitions

Learning Objectives

Learning Objectives

Related questions

(Figure: Demand and Supply of Gasoline) Use Figure: Demand and Supply of Gasoline.Given the initial equilibrium of S1 and D,any price lower than _____ will exert pressure for the price to _____.A) $2.00;fallB) $2.50;riseC) $3.00;riseD) $2.50;fall

Definitions

Learning Objectives

Learning Objectives

Related questions

(Figure: Demand and Supply of Gasoline) Use Figure: Demand and Supply of Gasoline.Given the initial equilibrium of S₁ and D,any price lower than _ will exert pressure for the price to _.

A) $2.00;fall
B) $2.50;rise
C) $3.00;rise
D) $2.50;fall