The figure below shows the market demand and the market supply curve for gasoline. It would be useful to find the equations of the curves to answer the questions below.

-Refer to the figure above.Which of the following events would,all else being equal,unambiguously increase the equilibrium quantity?

Question

The figure below shows the market demand and the market supply curve for gasoline. It would be useful to find the equations of the curves to answer the questions below.
 
-Refer to the figure above.Which of the following events would,all else being equal,unambiguously increase the equilibrium quantity?

Quizplus · Accepted Answer

A decrease in prices of cars and increase in competition among oil-producing countries would shift the supply curve to the right, resulting in an increase in equilibrium quantity. Wider availability of public transportation would decrease demand for gasoline, shifting the demand curve to the left and decreasing equilibrium quantity. Political instability in oil-producing nations and an increase in prices of cars and decrease in wages of oil industry workers may affect both supply and demand, making the direction of the effect on equilibrium quantity unclear.

The Figure Below Shows the Market Demand and the Market