Examine the graph for the price of gasoline in Figure 3-1 , on page 46. Then, using a supply-and-demand diagram, illustrate the impact of each of the following on price and quantity demanded: Improvements in transportation lower the costs of importing oil into the United States in the 1960s. After the 1973 war, oil producers cut oil production sharply. After 1980, smaller automobiles get more miles per gallon. A record-breaking cold winter in 1995–1996 unexpectedly raises the demand for heating oil.
Examine the graph for the price of gasoline in Figure 3-1 , on page 46. Then, using a supply-and-demand diagram, illustrate the impact of each of the following on price and quantity demanded: Improvements in transportation lower the costs of importing oil into the United States in the 1960s. After the 1973 war, oil producers cut oil production sharply. After 1980, smaller automobiles get more miles per gallon. A record-breaking cold winter in 1995–1996 unexpectedly raises the demand for heating oil.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Examine the graph for the
Improvements in transportation lower the costs of importing oil into the United States in the 1960s.
After the 1973 war, oil producers cut oil production sharply.
After 1980, smaller automobiles get more miles per gallon.
A record-breaking cold winter in 1995–1996 unexpectedly raises the demand for heating oil.
Transcribed Image Text:4.5
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1.5
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1965
1970
1975
1980
1985
1990
1995
2000
2005
2010
Year
FIGURE 3-1. Gasoline Prices Move with Demand and Supply Changes
Price of gasoline (dollars per gallon, 2008 prices)
OPEC formed
Iranian
Frevolution
Traq war and
growing world
demand
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