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The Switch to the Use of Ethanol in Gasoline Is

Question 40

Multiple Choice

The switch to the use of ethanol in gasoline is driven primarily by its relatively lower price.Assuming a competitive market,what effect would this change have on the equilibrium price and output for gasoline?


A) Price rises,output falls.
B) Price falls,output rises.
C) Price rises,output rises.
D) Price falls,output falls.

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