Answer:
1. Supply
2. Lower
Explanation:
The supply curve of any product is a representative of the relationship between the price of that product and the quantity of product the supplier is willing and able to supply at any given point in time.
However, factors that determines supply curve of goods are but not limited to the following:
1. Cost of production
2. Investment capacity
3. Technological advancement
4. Lower taxes
5. Large reserves of main raw materials
Hence, with the discovery of a large reserve of crude oil, which is one of the many factors that affects supply curve, it will result in SHIFT OF SUPPLY CURVE of the gasoline. At the same time, as there is shift in supply chain of the gasoline, it will results into LOWER equilibrium price due to increase in supply but decrease in demand.
Therefore, The discovery of a large new reserve of crude oil will shift the SUPPLY curve for gasoline, leading to a LOWER equilibrium price.
