8. In March 2002 the retail price of gasoline was

$1.19 per gallon — exactly the same as it was in August 1990. Yet, total gasoline production and consumption rose from 6.6 million barrels per week in 1990 to 8.7 million barrels per week in 2002. Using the graph below, draw the appropriate shifts in the demand and supply curves to explain these two phenomena.

Transcribed Image Text:

Price ($/barrel) $1.19- 0 6.6 $1990 D1990 Millions of barrels/week