Questions: 5 pts Let's suppose (hypothetically) that the equilibrium price of gasoline has decreased recently. Which of the following combinations of changes in demand and supply best explains this price decrease? Demand has decreased a little, and supply has decreased a lot. Demand has increased a lot and supply has increased a little. Demand has increased a little, and supply has increased a lot. Demand has increased a little, and supply has stayed the same. Demand has increased a lot, and supply has decreased by the same amount.

The answer is: Demand has increased a little, and supply has increased a lot.

If demand decreases and supply decreases significantly, the effect on price is uncertain. A large decrease in supply would typically increase prices, not decrease them.

An increase in demand with a smaller increase in supply would likely lead to higher prices, as the demand pressure would outweigh the supply increase.

This scenario would lead to a decrease in the equilibrium price. A small increase in demand would be outweighed by a large increase in supply, leading to a surplus and thus a decrease in price.

If demand increases slightly and supply remains constant, prices would typically increase due to higher demand pressure.

If demand increases significantly while supply decreases by the same amount, prices would likely increase due to the higher demand and lower supply.