. Let the market for gasoline be in equilibrium. The price of cars sees a decrease and at the same time there is a new technology identified known as fracking which allows us to extract crude oil easier than before. Draw a neatly labelled equilibrium diagram and neatly indicate the shifts of the demand and supply curve. What happens to equilibrium price and quantity of gasoline?

Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter4: The Market Forces Of Supply And Demand
Section: Chapter Questions
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1. Let the market for gasoline be in equilibrium. The price of cars sees a decrease and at the same time there is a new technology identified known as fracking which allows us to extract crude oil easier than before. Draw a neatly labelled equilibrium diagram and neatly indicate the shifts of the demand and supply curve. What happens to equilibrium price and quantity of gasoline? 

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