Assume that the government increases the unit excise tax on gasoline suppliers and also that people commute longer distances to work as more houses are built in city suburbs. As a result the equilibrium price and quantity of gasoline will most likely change in which of the following ways? Price Quantitya. Increase Increaseb. Decrease Indeterminatec. Indeterminate Increased. Increase Indeterminatee. Indeterminate Decrease

Increase , indeterminate ( D )

Explanation:

If the government increases the unit excise tax on gasoline suppliers the supplier will most definitely increase the price of he gasoline in the open market . according to the law of economics the increase in price of commodities leads to a significant decrease in demand for the commodity.

but with a inelastic/essential commodity an increase in the price of the commodity the change in demand is not significant hence it is indeterminate.  The gasoline is an essential commodity in this question because the people need it to commute longer distances to work regardless of the price changes . the change in the quantity is indeterminate because the people might continue buying the same quantity, reduce slightly the quantity been purchased or increase the quantity. on the other hand the supplier might decide to either maintain the same supply, or reduce the amount of supply or even increase the supply .

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

answer casual models;