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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...
I need help to: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 $3.00 per gallon to around $5.00 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.
Consider the following diagram: Since gasoline is not required in production of auto, the supply curve will remain unchanged.Now, as gasoline is considered as complementary in consumption, the...