Final answer:
A decline in the market price of oil leads to a violation of the ceteris paribus assumption in the context of the gasoline supply curve, and while it results in an increase in the quantity of gasoline supplied at each price, it does not inherently shift the supply curve or change its upward sloping nature.
Step-by-step explanation:
When considering the impact of a decline in the market price of oil on the supply curve for gasoline, a few statements can be evaluated for their correctness:
- The ceteris paribus assumption is violated if the cost of inputs to production, like oil, change because the assumption requires all other factors except the one being studied to remain constant.
- The supply curve will not necessarily move to a different place. A decrease in input costs, like oil, would lead to a movement along the supply curve, not a shift of the supply curve itself unless producers alter the quantity they are willing to supply at each price level.
- The quantity of gasoline supplied at each price will change because a lower cost of production makes it more profitable to produce more, which typically results in an increase in supply.
- The supply curve will not become downward sloping; supply curves are typically upward sloping, reflecting that higher prices lead to a higher quantity supplied.
Therefore, a decline in oil prices, while affecting the supply of gasoline, does not inherently move the supply curve to a new place, nor does it make the supply curve downward sloping. It does, however, affect the quantity supplied at each price.