If the price of crude oil (an input to the production of gasoline)decreases,then we will expect to see

Question

Quizplus · Accepted Answer

A decrease in the price of crude oil, which is a key input in the production of gasoline, would reduce the cost of producing gasoline. This would make it more profitable for firms to produce gasoline at any given price, leading to an increase in the quantity supplied. This is represented by a rightward shift in the supply curve for gasoline, not just a movement along the supply curve.

If the Price of Crude Oil (An Input to the Production