What will happen to the equilibrium price and quantity of cars if ther
What will happen to the equilibrium price and quantity of cars if there is an increase in the price of gasoline?
What will be an ideal response?
ANSWER
An increase in the price of gasoline will cause a left shift in the demand for cars, keeping supply unchanged. With supply unchanged and a left shift in the demand for cars, both the equilibrium price and quantity of cars will decrease.
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