The increasing popularity of sports utility vehicles, SUVs, has led auto dealers to keep a large quantity of them in stock.With the increase in the price of gasoline, however, demand has been falling. Draw demand and supply curves in the diagram for SUVs before the increase in the price of gasoline. Show the equilibrium price and quantity.
Illustrate the effect of the increase in the price of gasoline in the market for SUVs. Indicate the effect of this on equilibrium price and quantity.