Was the higher price caused by change in demand

Reference no: EM13221079

In the last month, the price of gasoline increased by 20 percent. Your job is to determine what caused the increase in price: a change in demand or a change in supply. Ms. Info has all the numbers associated with the gasoline market, and she can answer a single factual question. (She cannot answer the question "Was the higher price caused by change in demand or a change in supply?")

a. What single question would you ask?

b. Provide an answer to your question that implies that the higher price was caused by a change in demand. Illustrate with a complete graph.

c. Provide an answer to your question that implies that the higher price was caused by a change in supply.

Reference no: EM13221079

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