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The figure below shows the market demand and the market supply curve for gasoline. It would be ...

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The figure below shows the market demand and the market supply curve for gasoline. It would be ...

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?

▸ Decrease in prices of cars and increase in competition among oil-producing countries

▸ Political instability in oil-producing nations

▸ Wider availability of public transportation

▸ Increase in prices of cars and decrease in wages of oil industry workers

Textbook

Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

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You make an excellent tutor!

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