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Unformatted text preview: equilibrium quantity is unclear (could rise or fall). 8. (20 pts) Consider the effects of a disruption in refining following the recent hurricanes: Price of gasoline Quantity demanded of gasoline Quantity supplied of gasoline Reduced quantity supplied of gasoline 1.00 50 35 20 2.00 45 45 30 3.00 40 55 40 4.00 35 65 50 ($ per gallon) (millions of gallons per month) a. Use the above table to graph demand, supply, and a reduction in the supply of gasoline. b. What is the original equilibrium price and equilibrium quantity? What is the new equilibrium price and equilibrium quantity? How have price and quantity changed?...
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This note was uploaded on 02/20/2012 for the course ECON 202 taught by Professor Brightwell during the Spring '08 term at Texas A&M.
- Spring '08