The Hull Petroleum Company and Inverted V are retail gasoline franchises that compete in a local market to sell gasoline to consumers. Hull and Inverted Vare located across the street from each other and can observe the prices posted on eact other's marquees. Demand for gasoline in this market is Q = 60 - 10P, and both franchises obtain gasoline from their supplier at $2.80 per gallon. On the day that both franchises opened for business, each owner was observed changing the price gasoline advertised on its marquee more than 10 times; the owner of Hull lowered its price to slightly undercut Inverted V's price, and the owner of Inverted V lowered its advertised price to beat Hull's price. Since then, prices appear to have stabilized. Under current conditions: a) how many gallons of gasoline are sold in the market? b) at what price?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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The Hull Petroleum Company and Inverted V are retail
gasoline franchises that compete in a local market to sell
gasoline to consumers. Hull and Inverted Vare located
across the street from each other and can observe the
prices posted on eact other's marquees. Demand for
gasoline in this market is Q = 60 - 10P, and both
franchises obtain gasoline from their supplier at $2.80
per gallon. On the day that both franchises opened for
business, each owner was observed changing the price
gasoline advertised on its marquee more than 10 times;
the owner of Hull lowered its price to slightly undercut
Inverted V's price, and the owner of Inverted V lowered
its advertised price to beat Hull's price. Since then, prices
appear to have stabilized. Under current conditions:
a) how many gallons of gasoline are sold in the market?
b) at what price?
Transcribed Image Text:The Hull Petroleum Company and Inverted V are retail gasoline franchises that compete in a local market to sell gasoline to consumers. Hull and Inverted Vare located across the street from each other and can observe the prices posted on eact other's marquees. Demand for gasoline in this market is Q = 60 - 10P, and both franchises obtain gasoline from their supplier at $2.80 per gallon. On the day that both franchises opened for business, each owner was observed changing the price gasoline advertised on its marquee more than 10 times; the owner of Hull lowered its price to slightly undercut Inverted V's price, and the owner of Inverted V lowered its advertised price to beat Hull's price. Since then, prices appear to have stabilized. Under current conditions: a) how many gallons of gasoline are sold in the market? b) at what price?
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