Consider the market for gas. Which of the following changes would most likely lead to a decrease in supply?Group of answer choices(a) An increase in the price of petrol cars.(b) A major gas pipeline unexpectedly shutdown(c) The cost of gas production increases.Both a and b are correct.Both b and c are correctNone of the options in this list.
Question
Consider the market for gas. Which of the following changes would most likely lead to a decrease in supply?Group of answer choices(a) An increase in the price of petrol cars.(b) A major gas pipeline unexpectedly shutdown(c) The cost of gas production increases.Both a and b are correct.Both b and c are correctNone of the options in this list.
Solution
The option that would most likely lead to a decrease in supply in the market for gas is (b) A major gas pipeline unexpectedly shutdown. This is because the shutdown of a major pipeline would directly affect the availability of gas, thereby reducing the supply.
Option (a) An increase in the price of petrol cars would not necessarily affect the supply of gas. It might affect the demand for gas if people decide to buy less petrol cars, but it doesn't directly affect the supply of gas.
Option (c) The cost of gas production increases would also likely lead to a decrease in supply. If it becomes more expensive to produce gas, suppliers might decide to produce less of it.
Therefore, both options (b) and (c) are correct.
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