If the average price of gasoline is $3.25 per gallon in your town, and gasoline is perfectly competitive market, explain what might happen and why in your town if the price of gas dropped to $0.50 overnight. What if it jumped up to $10 per gallon overnight? a. If the price of gasoline were to suddenly drop overnight to $0.50, the quantity of gasoline bought and sold would
Answers: (stay the same, decrease, or increase)

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b. If the price of gasoline were to suddenly jump to $10 per gallon, the quantity of gasoline bought and sold would
Answers: (stay the same, decrease, increase)

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The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.

Acapitalist economy is when all goods are owned by the government or private industries.