Question

The market for gasoline has changed in a couple significant ways over the last few years: new technologies have decreased the costs associated with producing gasoline, and automobiles are becoming more fuel efficient. describe how these changes affect the supply of and demand for gasoline. what is the overall effect on equilibrium price?

Answer 1

In economics, supply and demand refers to a relationship between the amount of a ware that producers wish to offer at different costs and the amount that consumers wish to purchase. 
Because of the way that automobiles are ending up more fuel proficient the general impact on the equilibrium cost of gasoline is that there will be a less need of gas required thus the cost will diminish or decrease. According to my thinking, it would be more beneficial to the economy due to the lesser degree a need however it would offer more gas because of the abatement in cost. Society utilizes different things that uses gas other than cars, for example, lawnmowers, tractors, bikes, and so on. So despite the fact that new advancements are diminishing the cost related with creating gas society still deliver items that utilizes fuel every day that will keep on having an impact on the equilibrium price overall.

Answer 2

With the reduced demand for gasoline production inventory, it will increase the demand for gas. Because the level of gasoline demand is decreasing, electricity has the potential to be an alternative energy source for the future, in the future, electric-powered cars remain a promising solution because it is supported by many car manufacturers who have started producing electric cars.

Further Explanation

The impact of supply and demand imbalances

If the available inventory is excessive, the inventory will incur high expenditure. Each item that is stored must require a fee.

However, if there is insufficient supply, it will hamper production activities, the risk can be lost sales and consumers.

In the equilibrium price, the law of supply and demand applies when the amount of demand is greater than the amount of supply, the price will rise, whereas if the amount of supply is greater than the amount of demand, the price will go down.

Changes in market balance

Changes in market balance occur when there are changes in demand and or supply. If the factor causing the change is the price, the balance will return to the starting point. But if what changes are ceteris paribus factors such as technology for the supply side, or income for the demand side, the balance does not return to the starting point.

Learn More

Market supply and demand brainly.com/question/7876483

Market balance brainly.com/question/7876483

Details

Grade: College

Subject: Business

Keyword: inventory, market, balance