Could someone please give me a supply and demand graph of gasoline?

Question

I need one that is pretty accurate and i need to know whether the supply is going down or staying the same. I know it sounds pretty dumb, but wouldn't the supply just sit there since it's always been there? I know the demand curve shifts right though.

Answer 1

Quantity supplied would likely go up, since more gasoline is demanded more should be produced.  Anyway my theory on the supply curve is it should be gradually shifting to the left because as we drill for oil, the earth's supply decreases. (Remember there is a difference between Quantity supplied and Supply). Eventually, even if we are not running short on oil it gets more difficult to drill for, which would also decrease supply. And remember, gasoline is a relatively inelastic good, so price can go up without a dramatic effect on quantity demanded. That is in the short run, in the long alternative technologies will come about,such as hybrid cars, lowering the demand for gasoline.