Principles of Economics, 7th Edition

by Mankiw, N. Gregory

Published by South-Western College

ISBN 10: 128516587X

ISBN 13: 978-1-28516-587-5

Chapter 4 - Part II - The Market Forces of Supply and Demand - Quick Check Multiple Choice - Page 86: 4

Answer

supply, lower

Work Step by Step

The discovery of a large new reserve would cause the supply curve of gasoline to shift because the quantity supplied would increase from the increase in availability, causing the equilibrium price to lower.

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