Use the following to answer question(s): Demand and Supply of Gasoline

-(Exhibit: Demand and Supply of Gasoline) When the supply curve shifted from the initial equilibrium to the new intersection of supply and demand at a price of ________ and quantity of 400, this could have resulted from ________ .

Question

Use the following to answer question(s): Demand and Supply of Gasoline
 
-(Exhibit: Demand and Supply of Gasoline) When the supply curve shifted from the initial equilibrium to the new intersection of supply and demand at a price of ________ and quantity of 400, this could have resulted from ________ .

Quizplus · Accepted Answer

The correct answer is B because an improvement in refining technology would increase the supply of gasoline, causing the supply curve to shift to the right. This would result in a new equilibrium at a lower price and a higher quantity than the initial equilibrium. Option A is incorrect because an increase in consumers' income would likely shift the demand curve, not the supply curve. Option C is incorrect because an increase in the number of buyers would also shift the demand curve, not the supply curve. Option D is incorrect because only B is true.

Use the Following to Answer Question(s): Demand and Supply of Gasoline