1. According to Statistics Canada, the average price of gasoline has increased over time. In April 2017, the price of gasoline in Calgary, Alberta was 108.3 cents per litre. By April 2018, the price had increased to 125.2 cents per litre. Assume that there were no changes in consumers' income, population, or any other influence on buying plans. Explain how the rise in the price of gasoline would affect

The demand for gasoline?

The quantity of gasoline demanded?

2. Assume that a body of scientific research finds that the consumption of apples increases the probability of becoming wealthy.

i. Would the finding cause a change in supply, a change in quantity supplied, a change in demand, or a change in quantity demanded?

ii. Explain the basis for your answer in (i)

ii. Using demand and supply curves, indicate the immediate effect of the research finding on equilibrium price and quantity of apples. Show the direction of the change. Properly label your graph.