Supply and demand in the market for gasoline
Question:
Using the supply and demand framework in the market for gasoline, which of the following charts below describes the effects of a discovery of more oil, which is used as an input for gasoline.
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You do not need to have actual numbers on this graph, but you should clearly indicate how the increase in the price of gasoline will affect the market for hybrid vehicles, and what will happen to the equilibrium price and quantity of hybrid vehicl
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