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Suppose there is a linear downward-sloping demand curve and a linear upward-sloping supply curve for a...

  1. Suppose there is a linear downward-sloping demand curve and a linear upward-sloping supply curve for a good. Government regulations increase the cost of producing gasoline while at the same time government regulations reduce the cost of driving a relatively inefficient sport utility vehicle (SUV). Graph the original demand and supply curves to explain how the equilibrium price will change?
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