In the short run, what happens to the competitive market price of gasoline when a state'sdemand curve shifts to the right during warm months? In your answer, distinguish betweenareas in which regular gasoline is sold and jurisdictions that require special blends.Show the effect of a shift of the demand curve in areas that use regular gasoline.1.) Use the line drawing tool to draw a new demand curve for regular gasoline. Label this line2.) Use the point drawing tool to identify the new market equilibrium. Label this point 'E₂'.Carefully follow the instructions above, and only draw the required objects.Show the effect of both a small and a large shift of the demand curve in a jurisdiction thatuses a special blend.1.) Use the line drawing tool to draw a new demand curve for special-blend gasoline for asmall increase in demand such that the equilibrium price does not change. Label this line 'D³.2.) Use the point drawing tool to identify the corresponding market equilibrium for a smallincrease in demand such that the equilibrium price does not change. Label this point 'E3'.3.) Use the line drawing tool to draw a new demand curve for special-blend gasoline for alarge increase in demand such that the equilibrium price rises. Label this line D¹.4.) Use the point drawing tool to identify the corresponding market equilibrium for a largeincrease in demand such that the equilibrium price rises. Label this point 'E4'.Carefully follow the instructions above, and only draw the required objects.p. $ per gallonp. $ per gallona10E₁D291Q. Billion gallons of gasoline per dayE₁D¹91Q. Billion gallons of gasoline per daySOO

Perfect competition is a theoretical market structure in economics that represents a scenario where…

In the short run, what happens to the competitive market price of gasoline when a state's demand curve shifts to the right during warm months? In your answer, distinguish betwe areas in which regular gasoline is sold and jurisdictions that require special blends. Show the effect of a shift of the demand curve in areas that use regular gasoline. 1.) Use the line drawing tool to draw a new demand curve for regular gasoline. Label this D². 2.) Use the point drawing tool to identify the new market equilibrium. Label this point 'E₂

In the short run, what happens to the competitive market price of gasoline when a state's demand curve shifts to the right during warm months? In your answer, distinguish betwe areas in which regular gasoline is sold and jurisdictions that require special blends. Show the effect of a shift of the demand curve in areas that use regular gasoline. 1.) Use the line drawing tool to draw a new demand curve for regular gasoline. Label this D². 2.) Use the point drawing tool to identify the new market equilibrium. Label this point 'E₂

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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ANSWER ONLY LETTER D ONLY.
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