Assume the market for gasoline is initially in equilibrium.
a) Draw a demand and supply diagram to illustrate the initial equilibrium.
b) Explain the impact on the market if there is simultaneously an increase in population and decrease in the price of crude oil.
c) Graphically illustrate the impact on the diagram you prepared for part (a).

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The Answer of Assume the market for gasoline is initially in equilibrium.
a) Draw a demand and supply diagram to illustrate the initial equilibrium.
b) Explain the impact on the market if there is simultaneously an increase in population and decrease in the price of crude oil.
c) Graphically illustrate the impact on the diagram you prepared for part (a).

Assume the Market for Gasoline Is Initially in Equilibrium