Gasoline production and consumption rose

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In March 2002 the retail price of gasoline was $1.19 per gallon- exactly the same as it was in August 1990. Yet, total gasoline production and consumption rose from 6.7 million barrels per week in 1990 to 8.7 million barrels per week in 2002.

With the aid of a supply and demand diagram, briefly explain how these two phenomena could simultaneously be true.

Reference no: EM131424620

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