Suppose it is announced that industry analysts are predicting that decreased oil supplies from abroad will cause gasoline prices to rise. beginning next month. In the current week the announcement would ____________
A. shift the supply of gasoline right B. shift the demand for gasoline left C. shift the demand for gasoline right D. have no effect on the demand or supply of gasoline E. oil supplies and gasoline are not related
Correct Answer: C
Explanation
Price increase expectation usually cause the demand for a product to increase instantly when the information is available.
