quantity of oil.

g. Solar energy is a substitute for oil-based energy. So if solar energy becomes cheaper, the demand for

oil will decrease as consumers switch from oil to solar. The decrease in demand for oil will be shown

as a leftward shift in the demand curve. As the demand curve shifts down the supply curve, both

equilibrium price and quantity for oil will fall.

h. A new, popular kind of plastic will increase the demand for oil. The increase in demand will be shown

as a rightward shift in demand, raising the equilibrium price and quantity of oil.

5. Step 1. Draw the graph with the initial supply and demand curves. Label the initial equilibrium price and

quantity.

Step 2. Did the economic event affect supply or demand? Jet fuel is a cost of producing air travel, so an

increase in jet fuel price affects supply.

Step 3. An increase in the price of jet fuel caused an increase in the cost of air travel. We show this as an

upward or leftward shift in supply.
{"moddate": "2022-12-07T14:23:05-06:00", "creationdate": "2022-12-07T14:15:44-06:00", "creator": "PDFMiner", "file_size_mb": 26.99, "producer": "Prince 14.2 (www.princexml.com)", "file_hash": "830b81f41611ac67a490444dbb5d6aed292224606965b06965b914443c93331a", "title": "Principles of Microeconomics 3e", "source": "downloads\\business\\economics\\Microeconomics3e.pdf", "upload_timestamp": "2026-02-07T15:37:44.339247", "file_type": ".pdf", "source_file": "downloads\\business\\economics\\Microeconomics3e.pdf", "batch_upload": true, "file_name": "Microeconomics3e.pdf", "total_pages": 597, "uploaded_via": "batch_uploader"}