Demand and supply often shift in the retail market for gasoline. Below 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:Price Quantities Demanded Quantities SuppliedD1 D2 S1 S2$ 7.00 10,000 15,000 18,000 19,000 12,000 16,000 16,000 18,0005.00 17,000 17,000 18,000 12,000 Instructions: Round your answers for price to 2 decimal places. Enter quantities as a whole number.Use the following facts to fill in the missing data in the table. If demand is D1 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 $6.00 per gallon. When demand is D2 and supply is S1, there is an excess demand of 6,000 gallons per month at a price of $4.00 per gallon. If demand is D1 and supply is S2, the equilibrium quantity is 16,000 gallons per month.Compare two equilibriums. In the first, demand is D1 and supply is S1. In the second, demand is D1 and supply is S2.By how much does the equilibrium quantity change?Equilibrium quantity by gallons per month.By how much does the equilibrium price change?Equilibrium price by $ .If supply falls from S2 to S1 while demand simultaneously declines from D2 to D1, does the equilibrium price rise, fall, or stay the same?What happens if only supply falls?What happens if only demand falls?Suppose that supply is fixed at S1 and that demand starts at D1.By how many gallons per month would demand have to increase at each price such that the equilibrium price per gallon would be $6.00? gallons per monthBy how many gallons per month would demand have to increase at each price such that the equilibrium price per gallon would be $7.00? gallons per month
Question
Demand and supply often shift in the retail market for gasoline. Below 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:Price Quantities Demanded Quantities SuppliedD1 D2 S1 S26.00 per gallon. When demand is D2 and supply is S1, there is an excess demand of 6,000 gallons per month at a price of .If supply falls from S2 to S1 while demand simultaneously declines from D2 to D1, does the equilibrium price rise, fall, or stay the same?What happens if only supply falls?What happens if only demand falls?Suppose that supply is fixed at S1 and that demand starts at D1.By how many gallons per month would demand have to increase at each price such that the equilibrium price per gallon would be 7.00? gallons per month
Solution
The question is asking for several pieces of information based on the provided data and scenarios. Here's how you can answer each part:
-
The change in equilibrium quantity when demand is D1 and supply changes from S1 to S2: The equilibrium quantity changes from 14,000 gallons per month to 16,000 gallons per month. So, the equilibrium quantity increases by 2,000 gallons per month.
-
The change in equilibrium price is not provided in the data, so it cannot be determined.
-
If supply falls from S2 to S1 while demand simultaneously declines from D2 to D1, the equilibrium price would depend on the extent of the shifts in supply and demand. Without specific data, we cannot definitively say whether the price will rise, fall, or stay the same.
-
If only supply falls (demand remains constant), the equilibrium price will typically rise due to the law of supply and demand.
-
If only demand falls (supply remains constant), the equilibrium price will typically fall due to the law of supply and demand.
-
To determine by how many gallons per month demand would have to increase at each price for the equilibrium price per gallon to be 7.00, we would need more information about the specific demand and supply curves. This information is not provided in the question.
Similar Questions
There is an increase in the quantity of gasoline exchanged in the market, but the price remains the same. What must have happened to supply and demand?There was an increase in demand and an increase in supply.There was a decrease in demand and an increase in supply.There was an increase in demand and a decrease in supply.There was a decrease in demand and a decrease in supply.
Complete the problem by using the accompanying figure, which shows a supply function and a demand function. (Assume price is measured in dollars.)Match the question with the correct answer. Is there a surplus or shortage when the price is $38? a. 56 units If the price is $38, what quantity is demanded? b. 4 units How many units is the surplus or shortage? c. 52 units If the price is $38 what quantity is supplied? d. surplus
Use the data in the table below to answer the following question. Price Quantity Demanded$20 1218 1716 2014 2412 3010 368 406 444 48 The price elasticity of demand (based on the midpoint formula) when price increases from $10 to $12 isMultiple Choice-3.29.-1.37.-1.-0.33.
Demand and SupplyTake a look at the following table.Price Supply Demand$10 105 942$20 190 673$30 304 452$40 490 298Where would the equilibrium price lie?Between $10 and $20Between $20 and $30Between $30 and $40Above $40
The manager of a service station wants to forecast the demand of unleaded gasoline next month in order to place an order with the distributor. The manager has accumulated ten months of demand data. Use this data to answer the following TWO questions.month gasoline demandedOctober 360November 326December 284January 225February 290March 311April 329May 365June 540July 441 Flag question: Question 2Question 2Tips8.5 ptsCompute an exponentially smoothed forecast for August, using an 𝛼 value of 0.30. Round to two decimal places.
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.