On January 28, 2020, the U.S. Energy Information Agency (EIA) published an article with this title: "EIA expects gasoline and diesel prices to increase as U.S. economy recovers" (you do not need to read the story in order to answer this question). Essentially, the article's author predicted that the combination of generous stimulus payments and the extremely successful Covid vaccination campaign should lead to a significant increase in the number of drivers getting back on the road.

• Using the same graph you submitted for Question 7, depict and explain the impact of the change described in the article on the market for gasoline. Which of the curve(s), if any, would shift, and why? Graphically indicate the new equilibrium, labeling it asP₂andQ₂.

SI + T Consumer incidence Consumer Tax Burden Producer incidence - Producer Tax Burden Qi Qo