A more efficient process for refining oil into gasoline is developed. As a result, the market price of gasoline:
A)and the quantity of gasoline purchased both increase.
B)increases and the quantity of gasoline purchased falls.
C)decreases and the quantity of gasoline purchased rises.
D)decreases and the demand curve for gasoline shifts to the right.

Question

A more efficient process for refining oil into gasoline is developed. As a result, the market price of gasoline:
A)​and the quantity of gasoline purchased both increase.
B)​increases and the quantity of gasoline purchased falls.
C)​decreases and the quantity of gasoline purchased rises.
D)​decreases and the demand curve for gasoline shifts to the right.

Quizplus · Accepted Answer

A more efficient refining process reduces the cost of producing gasoline, leading to a decrease in its market price. As the price decreases, consumers are likely to buy more, hence the quantity of gasoline purchased rises. This reflects a movement along the demand curve, not a shift of the demand curve itself.

A More Efficient Process for Refining Oil into Gasoline Is