Suppose you notice that more and more people are driving gas-guzzling - 11556

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yousafbhutta

yousafbhutta

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  • From: , Microeconomics
  • Posted on: Sun 24 Jun, 2012
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Suppose you notice that more and more people are driving gas-guzzling cars. Since you drive an economy car, their increased demand for gas:

 

·   does not affect you.

 

·   causes companies to charge a lower price, thus benefiting you.

 

·   causes the price you pay for gas to increase.

 

·   does not change the price you pay, but reduces the quantity of gas supplied.

 

Solution Description

 

Suppose you notice that more and more people are driving gas-guzzling cars. Since you drive an economy car, their increased demand for gas: