Question

1. using the example supply and demand chart above, which statement best explains what is happening? a. there has been an increase in supply due to a new law imposing a heavy tax on gasoline cars. b. the demand for gasoline has decreased due to a new law that forces people to buy electric cars. c. the equilibrium price and quantity for gasoline cars has increased due to the new law requiring people to buy electric cars. d. the demand for gasoline has increased due to a new law that forces people to buy electric cars.

Explanation:

Step1: Analyze the law impact

The law makes people buy electric - cars.

Step2: Consider gasoline - car relationship

Fewer gasoline - cars mean less gasoline demand.

Step3: Observe graph shift

Demand curve shifts left, indicating decreased demand.

Answer:

B. The demand for gasoline has decreased due to a new law that forces people to buy electric cars.