A combination of factors has driven the price of gas to an all-time high. Illustrate and explain the short-run and long-run impact on the market for automobiles and on individual automobile producers.
A combination of factors has driven the price of gas to an all-time high. Illustrate and explain the short-run and long-run impact on the market for automobiles and on individual automobile producers. Assume that cars are produced in a perfectly competitive, constant-cost industry. Identify and explain 5 consequences of higher gas prices outside of the automobile market.
