Question

uol or problem) 1. Crude petroleum is an input in the production of gasoline. In the 1970s, the United States experienced two major "negative oil shocks," which significantly reduced the supply of crude petroleum in the counie paribus, it follows that, in the standard supply and demand model, the supply of gasoline , leading to a equilibrium price of gasoline. ecreased; higher .increased: higher C. decreased; lower D. increased; lower 2. In the space below, graph the impact on the gasoline market from a negative supply shock in the crude petroleum market. Be sure to show clearly the impact of the shock on the equilibrium price and quantity exchanged of gasoline. AtIh Price

Answer 1

Hie 2 Prnice Demand 9, a 2 Bes to sut