The table below shows the demand and supply schedule for gasoline in a hypothetical country called Microland.Price per litre ($)Quantity Demanded in 000Quantity Supplied in 000 litres (per Month)litres (per month)11.02710 2259 4238 6207 8176 10155 12124 14103 1672 1851 33 1a. Construct the demand and supply curves for gasoline to show the market equilibrium for gasoline.1b. Given a new government policy in Microland, Gasoline producers have started to obtain subsidies from the government. Construct a NEW diagram to show the impact of the subsidy on the market equilibrium

In the free market, the equilibrium quantity and demand is determined by the forces of demand curve…

Answered: The table below shows the demand and…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The table below shows the demand and supply schedule for gasoline in a hypothetical country called Microland.

Price per litre ($)	Quantity Demanded in 000	Quantity Supplied in 000
	litres (per Month)	litres (per month)
11	.	0	27
10		2	25
9		4	23
8		6	20
7		8	17
6		10	15
5		12	12
4		14	10
3		16	7
2		18	5
1		3	3

1a. Construct the demand and supply curves for gasoline to show the market equilibrium for gasoline.

1b. Given a new government policy in Microland, Gasoline producers have started to obtain subsidies from the government. Construct a NEW diagram to show the impact of the subsidy on the market equilibrium

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