Question

Consider a Texaco gas station. If it introduces a new technology where customers pay at the pump, thus decreasing production costs, there will be: Group of answer choices A shift to the right in the station’s Supply curve and lower gas prices. A shift to the left in the station’s Supply curve and higher gas prices. A shift to the right in the customer’s demand curve and higher gas prices. A shift to the left in the customer’s demand curve and lower gas prices.

Answer 1

Answer:

A shift to the right in the station’s Supply curve and lower gas prices.

Explanation:

Lowering the cost gives the gas provider the chance to become more competitive. This is done by lowering the price of the product, which tends to attract more consumers. In parallel, the texaco post tends to increase the supply of the product, to sell more and maximize revenue. Therefore, the supply curve will move to the right and the price of the product will be lower.