If the price of crude oil falls, the equilibrium price of ...

[mcmcdaniel]

If the price of crude oil falls, the equilibrium price of gasoline ________ and the equilibrium quantity ________.
 
  A) rises; increases
  B) rises; decreases
  C) falls; increases
  D) falls; decreases

Question 2

Which of the following is a difference between a monopolistically competitive market and a perfectly competitive market in the long run?
 
  A) Firms in a monopolistically competitive market earn zero economic profits in the long run, while firms in a perfectly competitive market earn positive economic profits in the long run.
  B) Firms in a monopolistically competitive market earn zero economic profits in the long run, while firms in a perfectly competitive market incur losses in the long run.
  C) Firms in a monopolistically competitive market charge a price higher than marginal cost in the long run, while firms in a perfectly competitive market charge a price equal to marginal cost in the long run.
  D) Firms in a monopolistically competitive market charge a price lower than marginal cost in the long run, while firms in a perfectly competitive market charge a price equal to marginal cost in the long run.

[aliotak]

Answer to Question 1

C

Answer to Question 2

C

[mcmcdaniel]

YES! Correct, THANKS for helping me on my review

[kjohnson]

Thanks for the timely response, appreciate it