Which of the following could change the equilibrium price of

Which of the following could change the equilibrium price of gas? : Correct Answer(s) A gas station does a week-long \"free car wash with 10-gallon purchase\" promotion. A hurricane destroys an oil refinery Summer weather encourages people to drive more. A newspaper runs a story on the history of the petroleum industry Incorrect Answer(s) MacBook Air

Solution

Answer : The equilibrium price of gas changes if A huricane destroys an oil refinery . The equilibrium price is determined by equality between demand and supply of gas , but if huricane destroys an oil refinery then in the short-run supply of gas is reduced and supply curve of gas shift upward to the left and it equal to the demand curve at higher price than before . So demand don\'t change but supply reduced , it increase the equilibrium price of gas and equilibrium point shift to above than orginal equilibrium point .