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Will the following factors lead to an increase (I)/ decrease (D)/ no change (NC) in the demand (D) or supply (S) in the market for
Will the following factors lead to an increase (I)/ decrease (D)/ no change (NC) in the demand (D) or supply (S) in the market for gasoline?
- The income of consumers increases. (Gasoline is a normal good.)
- We suddenly discovered a new oil field in Alberta.
- A new churning invention reduces the cost of producing hybrid cars.
- The production of diesel becomes more plentiful (diesel and gasoline are substitutes).
- A new government levies a special tax on gasoline consumption in order to protect the environment.
- OPEC decides to increase the price of gasoline next year in the hope of making more profits.
- Automobiles are now become more fuel-efficient.
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