Suppose the equilibrium price of a gallon of gasoline drops from $3.00 to $2.85 and the equilibrium quantity increases from 365 millions of gallons per week to 372 millions of gallons per week. These changes can be the result of

Question

Quizplus · Accepted Answer

An increase in supply would lead to a lower equilibrium price and a higher equilibrium quantity, as described in the scenario.

Suppose the Equilibrium Price of a Gallon of Gasoline Drops