Author Question: Suppose the equilibrium price of a gallon of gasoline drops from 3.00 to 2.85 and the equilibrium ... (Read 109 times)

P68T · **on:** Jun 29, 2018

Suppose the equilibrium price of a gallon of gasoline drops from 3.00 to 2.85 and the equilibrium quantity increases from 365 millions of gallons per week to 372 millions of gallons per week. These changes can be the result of

A) an increase in supply.
B) an increase in demand.
C) a decrease in supply.
D) a decrease in demand.

Question 2

The data in the table above shows the relationship between the Joneses' total consumption and total household income. Based on these data, total consumption varies

A) directly with their total household income.
B) independently of their total household income.
C) inversely with their total household income.
D) negatively with their income.