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Figure: Shifts in Demand and Supply IV
-(Figure: Shifts in Demand and Supply IV)Use Figure: Shifts in Demand and Supply IV.The figure shows how supply and demand might shift in response to specific events.Suppose oil becomes more expensive.Which panel BEST describes how this will affect the market for gasoline,which is made from oil?

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Use the following to answer questions:
Figure: Shifts in Demand and Supply IV 
-(Figure: Shifts in Demand and Supply IV)Use Figure: Shifts in Demand and Supply IV.The figure shows how supply and demand might shift in response to specific events.Suppose oil becomes more expensive.Which panel BEST describes how this will affect the market for gasoline,which is made from oil?

Quizplus · Accepted Answer

When oil becomes more expensive, the cost of producing gasoline increases, leading to a decrease in supply. This is represented by a leftward shift in the supply curve, as shown in Panel (d).

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