Permanent increase in the equilibrium price of gasoline

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Draw a supply-demand diagram representing the effect on the market for hybrid autos of a permanent increase in the equilibrium price of gasoline from around $2.00 per gallon to around $4.00 per gallon. Although you need not include specific numbers on your axes, label the axes on your diagram clearly. Also explain in a sentence or two why you shifted any S or D schedule that you show as having moved in your diagram.

Reference no: EM131166412

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