In the market for gasoline, if the change in demand due to the start of the summer driving season is greater than the change in supply due to disruptions in the refinery operations in the Gulf, then the equilibrium quantity will increase.

Question

Quizplus · Accepted Answer

When the increase in demand exceeds the increase in supply, the equilibrium quantity in the market will increase because the higher demand pushes the quantity sold up, even if supply is also rising.

In the Market for Gasoline, If the Change in Demand