Calculate the equilibrium price and quantity when the market is in equilibrium for the following situations below. Show a complete and stepwise solution for each problem. 1. Global oil demand is expected to decline in 2020 due to the effects of the global COVID-19 health crisis. The last time oil demand decreased was during a global financial crisis in 2009. In the Philippines, pump prices of diesel went down six times in seven weeks while gasoline prices also went down five times in six weeks. For eight weeks, the demand and prices of petroleum products were recorded in a local gasoline station. The table below shows the demand for and prices of diesel and gasoline. Average price per liter, in pesos Demand for gasoline, in liters Demand for diesel, in liters P33.00 10 12 P34.00 20 25 P35.00 30 36 P36.00 40 42 2. Market Equilibrium tudent Sheet ied Economics Quipper School IAcademic Strand | Accountancy, Business, and Management PREMIUM P37.00 50 55 Supply and prices of petroleum products were also recorded. The table below shows the supply and prices of diesel and gasoline for the same local gasoline station in the same period. Average price per liter, in pesos Supply of diesel, in liters Supply of gasoline, in liters P33.00 55 54 P34.00 50 52 P35.00 45 50 P36.00 40 42 P37.00 35 40 Using the given information, (1) draw the demand and supply curves for diesel and gasoline and (2) calculate for the equilibrium price and quantity of (a) diesel and (b) gasoline.
Calculate the equilibrium price and quantity when the market is in equilibrium for the following situations below. Show a complete and stepwise solution for each problem. 1. Global oil demand is expected to decline in 2020 due to the effects of the global COVID-19 health crisis. The last time oil demand decreased was during a global financial crisis in 2009. In the Philippines, pump prices of diesel went down six times in seven weeks while gasoline prices also went down five times in six weeks. For eight weeks, the demand and prices of petroleum products were recorded in a local gasoline station. The table below shows the demand for and prices of diesel and gasoline. Average price per liter, in pesos Demand for gasoline, in liters Demand for diesel, in liters P33.00 10 12 P34.00 20 25 P35.00 30 36 P36.00 40 42 2. Market Equilibrium tudent Sheet ied Economics Quipper School IAcademic Strand | Accountancy, Business, and Management PREMIUM P37.00 50 55 Supply and prices of petroleum products were also recorded. The table below shows the supply and prices of diesel and gasoline for the same local gasoline station in the same period. Average price per liter, in pesos Supply of diesel, in liters Supply of gasoline, in liters P33.00 55 54 P34.00 50 52 P35.00 45 50 P36.00 40 42 P37.00 35 40 Using the given information, (1) draw the demand and supply curves for diesel and gasoline and (2) calculate for the equilibrium price and quantity of (a) diesel and (b) gasoline.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Solve for the equilibrium quantity and equilibrium price when the market is
in equilibrium.
Product
Calculate the equilibrium price and quantity when the market is in equilibrium for the
following situations below. Show a complete and stepwise solution for each problem.
1. Global oil demand is expected to decline in 2020 due to the effects of the global
COVID-19 health crisis. The last time oil demand decreased was during a global
financial crisis in 2009. In the Philippines, pump prices of diesel went down six times
in seven weeks while gasoline prices also went down five times in six weeks. For
eight weeks, the demand and prices of petroleum products were recorded in a local
gasoline station. The table below shows the demand for and prices of diesel and
gasoline.
Demand for gasoline,
in liters
Average price per liter,
Demand for diesel,
in pesos
in liters
P33.00
10
12
P34.00
20
25
P35.00
30
36
P36.00
40
42
2.2. Market Equilibrium
2 Student Sheet
Applied Economics
Quipper School
General Academic Strand Accountancy, Business, and Management
PREMIUM
P37.00
50
55
Supply and prices of petroleum products were also recorded. The table below
shows the supply and prices of diesel and gasoline for the same local gasoline
station in the same period.
Supply of diesel,
in liters
Supply of gasoline,
in liters
Average price per liter,
in pesos
P33.00
55
54
P34.00
50
52
P35.00
45
50
P36.00
40
42
P37.00
35
40
Using the given information, (1) draw the demand and supply curves for diesel and
gasoline and (2) calculate for the equilibrium price and quantity of (a) diesel and (b)
gasoline.
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