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OpenStudy (anonymous):
Imagine that gas prices have increased to $5.00 per gallon. What will happen to the supply of fuel- efficient cars in the short run and in the long run? Explain.
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OpenStudy (anonymous):
This is a bit more of an economics question than history. As a rule, nobody is willing to pay $5 a gallon, so there will be a much higher demand for fuel efficient cars, thus the supply will increase rapidly in the short term. If the price of gas remains at $5, it will continue to increase.
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