Use the figure below to answer the following question(s).
Figure 3-14

Refer to Figure 3-14. The gasoline market was initially in equilibrium at point e. Other things constant, a decrease in the price of crude oil, an important ingredient used to produce gasoline, would likely move the equilibrium in this market toward point

Question

Use the figure below to answer the following question(s).
Figure 3-14

Refer to Figure 3-14. The gasoline market was initially in equilibrium at point e. Other things constant, a decrease in the price of crude oil, an important ingredient used to produce gasoline, would likely move the equilibrium in this market toward point

Quizplus · Accepted Answer

A decrease in the price of crude oil, an important ingredient used to produce gasoline, would likely decrease the overall cost of production for gasoline. This would shift the supply curve to the right and cause the equilibrium to move to a lower price and higher quantity, which is represented by point s on the graph.

Use the Figure Below to Answer the Following Question(s)