because gas would have beenaffordable.p, $ per gallonO E. resulted in a shortage becauserefiners would have shut downtheir plants in protest.Consider the market for gasoline illustratedin the figure to the right. Suppose thesupply of gasoline was initially S', wherethe market equilibrium is initially at e, at anP1equilibrium price of p, and an equilibriumquantity of Q,. After Hurricane Katrina,assume the gasoline supply curve shifts tos?1.) Using the point drawing tool, indicate thenew equilibrium price and quantity in themarket for gasoline after Hurricane Katrina.Label this point 'e2.D1Q, quantity of gasoline2.) Using the point drawing tool, indicate themarket price and quantity of gasoline if pricecontrols are used to keep the price at (or nohigher than) the originalP. Label this point 'e."uilibrium price ofCarefully follow the instructions above, andonly draw the required objects.étv2MacBook AirDII80F9F10escF6F7F8F1F2F3F4F5&一@#$234679* 00

The equilibrium is achieved at intersection of demand and supply curve. As the hurricane Katrina…

Answered: because gas would have been affordable.…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose that in 2007 Ford sold 500,000 Mustangs at an average price of $18,800 per car; in 2008, 600,000 Mustangs were sold at an average price of $19,500 per car. From these statements what changes in supply or demand on the market for Mustangs produced such changes in equilibrium? (One graph. Start by plotting two points (price versus quantity, shift either supply or demand, not both) and then draw supply and demand graphs through them in a way that explains the change in the equilibrium from 2007 to 2008.
Suppose that the demand curve for corn has the equation p = -0.29q+6.265 and the supply curve for corn has the equation p = 0.2q +2.1, where p is the price per bushel in dollars and q is the quantity (demanded or produced) in billions of bushels. (a) Find the quantities supplied and demanded when the price of corn is $3.40 per bushel. (b) Determine the quantity of corn that will be produced and the price at which it will sell. (a) The quantity supplied when the price of corn is $3.40 is (Round to the nearest whole number as needed.) billion bushels.
Assume a market for a normal good is currently in equilibrium. If the expected price of the good is lower than the current price, then: Demand will (decrease / increase / not change): Blank 1 Supply will (decrease / increase / not change): Blank 2 Equilibrium price will (decrease / increase / not change): Blank 3 Equilibrium quantity will (decrease / increase / not change): Blank 4
For each of the following sets of demand and supply equations, find equilibrium P and Q. Qs = 5P Q₂ = 10 + P Q = 1500 +4.5P a) Q = 84-P b) Q = 67-2P c) Q = 5000-0.5P a) The equilibrium price is P = $1 and the equilibrium quantity is Q = (Simplify your answers. Type integers or decimals.) b) The equilibrium price is P = $1 and the equilibrium quantity is Q = 1 (Simplify your answers. Type integers or decimals.) c) The equilibrium price is P = $1 and the equilibrium quantity is Q = 1. (Simplify your answers. Type integers or decimals.)
Given the following market for breakfast cereal: Supply and Demand II. GRAPH Price (per unit) 0 P. The market is in equilibrium. Market price will not change. Quantity (per unit of time) Show the effect of consumer tastes and preferences declining for this good. Instructions: Use the interactive to model this change. What is the net effect on equilibrium price? [(Click to select) SETTINGS Supply Demand New Equilibrium Update What is the net effect on equilibrium quantity? (Click to select):
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Suppose a war breaks out in the Middle East, where a large proportion of the world's oil production takes place. Answer the following questions using supply-and-demand graphs. How will the market for used SUVs be affected? How do the equilibrium price and quantity change? Is there any ambiguity in the change in equilibrium price and/or equilibrium quantity?

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