Demand and supply often shift in the retail market for gasoline. Here.docx

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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 New Brunswick. D2 Price $6.00 5.00 4.00 3.00 Quantities Demanded Di 10,000 15,000 12,000 16,000 13.000 17,000 14,000 18,000 Quantities Supplied 81 S2 18,000 19,000 16,000 18,000 17,000 10,000 a. Use the following facts to fill in the missing data in the table. . If demand is D, and supply is S1, the equilibrium quantity is 14,000 gallons per month . When demand is D2 and supply is S1, the equilibrium price is $5.00 per gallon. . When demand is D2 and supply is S1, there is an excess demand of 8,000 gallons per month at a price of $3.00 per gallon. If demand is Dy and supply is S2, the equilibrium quantity is 16,000 gallons per month Instructions: Fill the missing data in the table above. b. Compare two equilibriums. In the first demand is Dy and supply is St. In the second, demand is Dy and supply is S2. By how much does the equilibrium quantity change? By how
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