question archive Assume the following data describe the gasoline market: (LO 3-3)Priceper gallon$2
Assume the following data describe the gasoline market: (LO 3-3)Priceper gallon$2
Subject:EconomicsPrice: Bought3
Assume the following data describe the gasoline market: (LO 3-3)Priceper gallon$2.00$2.25$2.50$2.75$3.00$3.25$3.50
Quantity
demanded
36
35
34
33
32
31
30
Quantity
supplied
24
26
28
30
32
34
36
(a) Graph the demand and supply curves.
(b) What is the equilibrium price?
(c) If supply at every price is reduced by 6 gallons, what will the new equilibrium price
be?
(d) If the government freezes the price of gasoline at its initial equilibrium price, how
much of a surplus or shortage will exist when supply is reduced as described in part (c)
above?
