A shift in the supply curve for gasoline in the United States would result if

A) a 50-cent tax on gasoline was enacted by Congress.
B) Congress and the president allowed oil to be drilled in previously restricted areas.
C) new methods were discovered for recovering oil from wells previously considered dried up.
D) All of the choices are true.

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Sarah Vaughan · Accepted Answer

Final Answer : D, Explanation :  All of the choices would cause a shift in the supply curve for gasoline in the United States.A 50-cent tax on gasoline would increase the cost of production for gasoline suppliers and thus decrease the quantity of gasoline suppliers would be willing and able to supply, resulting in a leftward shift in the supply curve.If Congress and the president allowed oil to be drilled in previously restricted areas, the supply of oil in the market would increase, causing a rightward shift in the supply curve for gasoline.Discovering new methods for recovering oil from wells previously considered dried up would also increase the supply of oil and cause a rightward shift in the supply curve for gasoline.

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