Macroeconomics 11th Edition by Michael Parkin

Exercise 9

Pump Prices on Pace to Top 2009 High by Weekend
The cost of filling up the car is rising as the crude oil price soars and pump prices may exceed the peak price of 2009.
a. Does demand for or the supply of gasoline or both change when the price of oil soars?
b. Use a demand-supply graph to illustrate what happens to the equilibrium price of gasoline and the equilibrium quantity of gasoline bought when the price of oil soars.