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because gas would have been affordable. p. $ per gallon· O E. resulted in a shortage because refiners would have shut down their plants in protest. Consider the market for gasoline illustrated in the figure to the right. Suppose the supply of gasoline was initially S', where the market equilibrium is initially at e, at an equilibrium price of p, and an equilibrium quantity of Q,. After Hurricane Katrina, assume the gasoline supply curve shifts to s? 1.) Using the point drawing tool, indicate the new equilibrium price and quantity in the market for gasoline after Hurricane Katrina. Label this point 'e2. D1 Q, quantity of gasoline 2.) Using the point drawing tool, indicate the market price and quantity of gasoline if price controls are used to keep the price at (or no higher than) the original equilibrium price of P1. Label this point 'ez. Carefully follow the instructions above, and only draw the required objects.

because gas would have been affordable. p. $ per gallon· O E. resulted in a shortage because refiners would have shut down their plants in protest. Consider the market for gasoline illustrated in the figure to the right. Suppose the supply of gasoline was initially S', where the market equilibrium is initially at e, at an equilibrium price of p, and an equilibrium quantity of Q,. After Hurricane Katrina, assume the gasoline supply curve shifts to s? 1.) Using the point drawing tool, indicate the new equilibrium price and quantity in the market for gasoline after Hurricane Katrina. Label this point 'e2. D1 Q, quantity of gasoline 2.) Using the point drawing tool, indicate the market price and quantity of gasoline if price controls are used to keep the price at (or no higher than) the original equilibrium price of P1. Label this point 'ez. Carefully follow the instructions above, and only draw the required objects.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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because gas would have been affordable. p, $ per gallon O E. resulted in a shortage because refiners would have shut down their plants in protest. Consider the market for gasoline illustrated in the figure to the right. Suppose the supply of gasoline was initially S', where the market equilibrium is initially at e, at an P1 equilibrium price of p, and an equilibrium quantity of Q,. After Hurricane Katrina, assume the gasoline supply curve shifts to s? 1.) Using the point drawing tool, indicate the new equilibrium price and quantity in the market for gasoline after Hurricane Katrina. Label this point 'e2. D1 Q, quantity of gasoline 2.) Using the point drawing tool, indicate the market price and quantity of gasoline if price controls are used to keep the price at (or no higher than) the original P. Label this point 'e." uilibrium price of Carefully follow the instructions above, and only draw the required objects. étv 2 MacBook Air DII 80 F9 F10 esc F6 F7 F8 F1 F2 F3 F4 F5 & 一 @ # $ 2 3 4 6 7 9 * 00
Transcribed Image Text:because gas would have been affordable. p, $ per gallon O E. resulted in a shortage because refiners would have shut down their plants in protest. Consider the market for gasoline illustrated in the figure to the right. Suppose the supply of gasoline was initially S', where the market equilibrium is initially at e, at an P1 equilibrium price of p, and an equilibrium quantity of Q,. After Hurricane Katrina, assume the gasoline supply curve shifts to s? 1.) Using the point drawing tool, indicate the new equilibrium price and quantity in the market for gasoline after Hurricane Katrina. Label this point 'e2. D1 Q, quantity of gasoline 2.) Using the point drawing tool, indicate the market price and quantity of gasoline if price controls are used to keep the price at (or no higher than) the original P. Label this point 'e." uilibrium price of Carefully follow the instructions above, and only draw the required objects. étv 2 MacBook Air DII 80 F9 F10 esc F6 F7 F8 F1 F2 F3 F4 F5 & 一 @ # $ 2 3 4 6 7 9 * 00
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