Problem 3A-1 Demand and supply often shift in the retail market for gasoline. Here are two demand curves and two supply curves for gallons of gasoline in the month of May in a small town in Maine. Some of the data are missing. Using the table, answer the following questions: Quantities Supplied D2 92 Price $4.00 9,000 Quantities Demanded D 5,000 7.500 6.000 8.000 8,500 9.000 9,500 8,000 9,000 8,500 2.00 5,000 Instructions: Enter your answers as whole numbers, a. Use the following facts to fill in the missing data in the table. If demand is D and supply is S. the equilibrium quantity is 7,000 gallons per month. When demand is D2 and supply is S. the equilibrium price is $3.00 per gallon. When demand is D2 and supply is S. there is an excess demand of 4,000 gallons per month at a price of $1.00 per gallon. If demand is D and supply is S2, the equilibrium quantity is 8,000 gallons per month. b. Compare the two equilibriums. In the first demand is and supply is S. In the second, demand is 2 and supply is S2. By how much does the equilibrium quantity change? Equilibrium quantity (Click to select by gallons per month. much does the equilibrium quantity change? Equilibrium quantity (Click to select by gallons per month. By how much does the equilibrium price change? Equilibrium price (Click to select by $ O c. If supply falls from Sto S while demand simultaneously declines from D2 to 2 does the equilibrium price rise, fall, or stay the same? (Click to select What if only supply falls? (Click to select What if only demand falls? (Click to select d. Suppose that supply is fixed at S and that demand starts at By how many gallons per month would demand have to increase at each price level such that the equilibrium price per gallon would be $3.00? gallons per month By how many gallons per month would demand have to increase at each price level such that the equilibrium price per gallon would be $4.00? gallons per month
Problem 3A-1 Demand and supply often shift in the retail market for g
Problem 3A-1 Demand and supply often shift in the retail market for gasoline. Here are two demand curves and two supply curves for gallons of gasoline in the month of May in a small town in Maine. Some of the data are missing. Using the table, answer the following questions: Quantities Supplied D2 92 Price $4.00 9,000 Quantities Demanded D 5,000 7.500 6.000 8.000 8,500 9.000 9,500 8,000 9,000 8,500 2.00 5,000 Instructions: Enter your answers as whole numbers, a. Use the following facts to fill in the missing data in the table. If demand is D and supply is S. the equilibrium quantity is 7,000 gallons per month. When demand is D2 and supply is S. the equilibrium price is $3.00 per gallon. When demand is D2 and supply is S. there is an excess demand of 4,000 gallons per month at a price of $1.00 per gallon. If demand is D and supply is S2, the equilibrium quantity is 8,000 gallons per month. b. Compare the two equilibriums. In the first demand is and supply is S. In the second, demand is 2 and supply is S2. By how much does the equilibrium quantity change? Equilibrium quantity (Click to select by gallons per month. much does the equilibrium quantity change? Equilibrium quantity (Click to select by gallons per month. By how much does the equilibrium price change? Equilibrium price (Click to select by $ O c. If supply falls from Sto S while demand simultaneously declines from D2 to 2 does the equilibrium price rise, fall, or stay the same? (Click to select What if only supply falls? (Click to select What if only demand falls? (Click to select d. Suppose that supply is fixed at S and that demand starts at By how many gallons per month would demand have to increase at each price level such that the equilibrium price per gallon would be $3.00? gallons per month By how many gallons per month would demand have to increase at each price level such that the equilibrium price per gallon would be $4.00? gallons per month
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