Ask Question
20 June, 06:32

Consider the market for gasoline. Suppose that a new oil-pump technology is developed, making gasoline production less costly. At the same time, war breaks out and several oil fields are destroyed. What will be the effect on supply

+1
Answers (1)
  1. 20 June, 06:37
    0
    Answer:Decrease in supply.

    Explanation: Supply is the amount of goods and services which an individual is willing and ready to purchase at a given price. The invention of a new technology which makes gasoline production less costly will lead to a decrease in price. Producers reduces supply when there's a decrease in price and increase supply when there's an increase in price. Also, the destruction of several oil fields means that there would be a reduction in the supply of oil in the economy. Since oil fields have been destroyed, it will have a negative effect on supply.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Consider the market for gasoline. Suppose that a new oil-pump technology is developed, making gasoline production less costly. At the same ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers