QUESTION 7 Review the following figure. Suppose the price of gasoline is $1.60 per gallon. . What would happen to the quantity demanded? . What would happen to the quantity supplied? . At $1.60, is the market in equilibrium, a shortage, or a surplus? P ($ per gallon) $2.20 $1.80 $1.40 $1.20 $1.00 50.60 Excess supply or surplus S An above-equilibrium price Equilibrium price A below equilibrium price Excess demand or shortage D 300 400 500 600 700 800 900 Quantity of Gasoline (millions of gallons) rise fall surplus shortage no change a shift in demand a shift in supply
QUESTION 7 Review the following figure. Suppose the price of gasoline is $1.60 per gallon. . What would happen to the quantity demanded? . What would happen to the quantity supplied? . At $1.60, is the market in equilibrium, a shortage, or a surplus? P ($ per gallon) $2.20 $1.80 $1.40 $1.20 $1.00 50.60 Excess supply or surplus S An above-equilibrium price Equilibrium price A below equilibrium price Excess demand or shortage D 300 400 500 600 700 800 900 Quantity of Gasoline (millions of gallons) rise fall surplus shortage no change a shift in demand a shift in supply
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter3: Demand And Supply
Section: Chapter Questions
Problem 52P: Review Figure 3.4 again. Suppose the price of gasoline is 1.00. Will the quantity demanded he lower...
Related questions
Question
Q7.
Select 1 answer for each question.
Expert Solution
Introduction
Market equilibrium: At the market equilibrium we have demand equals to supply. Or at market equilibrium point the maximum price which the consumers are willing to pay is exactly equals the minimum price at which the sellers are willing to sell.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Principles of Macroeconomics (MindTap Course List)
Economics
ISBN:
9781285165912
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Principles of Macroeconomics (MindTap Course List)
Economics
ISBN:
9781285165912
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou…
Economics
ISBN:
9781285165875
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning