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Answer to Question #94902 in Microeconomics for Gurleen
Question #94902
a. The price of crude oil rises
b. The price of car rises
both events are occurring concurrently what is the effect of this on market price and quantity of gasoline us equilibrium digram to support the answer
b. The price of car rises
both events are occurring concurrently what is the effect of this on market price and quantity of gasoline us equilibrium digram to support the answer
Expert's answer
Crude oil is a raw material for gasoline therefore if its price rises the price of gasoline will also rise causing the demand for gasoline to fall
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