Author Question: The switch to the use of ethanol in gasoline is driven primarily by its relatively lower price. ... (Read 151 times)

meagbuch · **on:** Jul 1, 2018

The switch to the use of ethanol in gasoline is driven primarily by its relatively lower price. Assuming a competitive market, what effect would this change have on the equilibrium price and output for gasoline?

A) Price rises, output falls.
B) Price falls, output rises.
C) Price rises, output rises.
D) Price falls, output falls.

Question 2

Your friend Dimitre tells you that he thinks that his favorite basketball team has a 70 chance of winning the next game. This is an example of

A) an objective probability.
B) a subjective probability.
C) a risk-averse statement.
D) Friedman-Savage preferences.