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.
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
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