question archive Answer true or false: An increase in the demand for gasoline, accompanied by a decrease in the supply of gasoline, will cause the price to rise but may cause the quantity purchased to increase, decrease, or remain the same
Answer true or false: An increase in the demand for gasoline, accompanied by a decrease in the supply of gasoline, will cause the price to rise but may cause the quantity purchased to increase, decrease, or remain the same
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Answer true or false:
An increase in the demand for gasoline, accompanied by a decrease in the supply of gasoline, will cause the price to rise but may cause the quantity purchased to increase, decrease, or remain the same.
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An increase in the demand for gasoline, accompanied by a decrease in the supply of gasoline, will cause the price to rise but may cause the quantity purchased to increase, decrease, or remain the same. True.
This is because, while both shifts lead to a price increase, the increase in demand leads to an increase in the quantity, however, the decrease in supply points to a decrease in quantity. The net result for the quantity depends on the weight of each event, as well as the slope of the supply and demand curves.
