Principles of Microeconomics, 7th Edition

Published by South-Western College
ISBN 10: 128516590X
ISBN 13: 978-1-28516-590-5

Chapter 4 - Part II - The Market Forces of Supply and Demand - Quick Check Multiple Choice - Page 86: 4

Answer

(B) supply, lower. Crude oil is a raw material used for producing Gasoline. Since, there a new, large supply of crude oil, there will a supply larger than the equilibrium demand. The large supply will pressurize the price of the good to go down to attain equilibrium.

Work Step by Step

Crude oil is a raw material used for producing Gasoline. Since, there a new, large supply of crude oil, there will a supply larger than the equilibrium demand. The large supply will pressurize the price of the good to go down to attain equilibrium.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.