**Market Analysis for Gasoline**Consider the market for gasoline, illustrated in the figure to the right.The equilibrium quantity of gasoline is [ ] million gallons (*enter a numeric response using a real number rounded to two decimal places*) and the equilibrium price is $[ ] per gallon.If instead the market price were $3.25, then there would be a [dropdown: surplus/shortage] of [ ] million gallons.**Graph Explanation**The graph displays the supply and demand curves for gasoline. The x-axis represents the quantity of gasoline in millions of gallons, ranging from 0 to 35 million gallons. The y-axis indicates the price of gasoline per gallon, from $0.00 to $5.00.- The supply curve (S) is represented by the red line, which slopes upwards, indicating that as the price increases, the quantity supplied also increases.- The demand curve (D) is depicted by the blue line, which slopes downwards, indicating that as the price decreases, the quantity demanded increases.The intersection of the supply and demand curves represents the equilibrium point, where the quantity supplied equals the quantity demanded. This point determines the equilibrium price and quantity for gasoline in the market. If the price is set above the equilibrium price, a surplus occurs, while a price below the equilibrium results in a shortage.

As shown in the diagram the downward sloping curve D is the demand curve of gasoline and upward…

Consider the market for gasoline, illustrated in the figure to the right. 5.00- S The equilibrium quantity of gasoline is million gallons (enter a numeric 4.50- response using a real number rounded to two decimal places) and the equilibrium price is $ per gallon. 4.00- 3.50- If instead the market price were $3.25, then there would be a of 3.00- million gallons. 2.50- 2.00- 8 1.50- 1.00- D 0.50- 0.00- i 10.5 14 17.5 21 24.5 28 31.5 35 3.5 Quantity of Gasoline (gallons in millions) Price of Gasoline (per gallon)

Consider the market for gasoline, illustrated in the figure to the right. 5.00- S The equilibrium quantity of gasoline is million gallons (enter a numeric 4.50- response using a real number rounded to two decimal places) and the equilibrium price is $ per gallon. 4.00- 3.50- If instead the market price were $3.25, then there would be a of 3.00- million gallons. 2.50- 2.00- 8 1.50- 1.00- D 0.50- 0.00- i 10.5 14 17.5 21 24.5 28 31.5 35 3.5 Quantity of Gasoline (gallons in millions) Price of Gasoline (per gallon)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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