To analyze which situation could result in a new equilibrium price of $1.80 for gasoline, we need to consider how each option would affect the supply and demand of gasoline.
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New oil supplies found in the Gulf of Mexico: This situation would likely increase the supply of gasoline, which could reduce the price and lead to a new equilibrium price lower than $1.80.
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An increase in the price of automobiles (a complementary good): If the price of automobiles increases, demand for gasoline might decrease (since fewer people might buy cars, or they might drive less). This would typically lead to a decrease in the price of gasoline.
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A war causing a disruption in the supply chain of oil: This scenario would likely reduce the supply of gasoline, leading to higher prices and potentially an equilibrium price above $1.80.
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A new technology that makes electric cars more affordable: If electric cars become more affordable, demand for gasoline might decrease as consumers might opt for electric vehicles instead. This could lead to a decrease in the price of gasoline.
Given these analyses, the situation that could potentially lead to a new equilibrium price of $1.80 is the first one: New oil supplies found in the Gulf of Mexico. It indicates an increase in supply, which aligns with adjusting to lower prices, potentially creating a new equilibrium price around $1.80.
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