If the price of gasoline decreases but not as much as the decrease in the average price of other goods and services, then the relative price of gasoline cannot be determined. decreases. remains the same. increases. increases or decreases, depending on the price of automobiles.
Added by Elizabeth M.
Close
Step 1
If the price of gasoline decreases, it means that gasoline becomes cheaper. Show more…
Show all steps
Your feedback will help us improve your experience
Rajendra Kumar and 63 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
When the price of oil declines significantly, the price of gasoline also declines. The latter occurs because of a(n): A. increase in the demand for gasoline. B. decrease in the demand for gasoline. C. increase in the supply of gasoline. D. decrease in the supply of gasoline.
Lottie A.
Suppose the price of gasoline is $1.00. Will the quantity demanded be lower or higher than at the equilibrium price of $1.40 per gallon? Will the quantity supplied be lower or higher? Is there a shortage or a surplus in the market? If so, of how much?
Azat N.
Crystal W.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD