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

• No School
• AA 1
• 3

This preview shows page 1 - 3 out of 3 pages.

Subscribe to view the full document.

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

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask 0 bonus questions You can ask 0 questions (0 expire soon) You can ask 0 questions (will expire )
Answers in as fast as 15 minutes