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 would likely decrease the cost of producing gasoline, leading to an increase in supply. This would cause the equilibrium point to shift to the right, toward point s.

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