You will analyze the Market for Gasoline Step 1: Draw a supply-and-demand diagram. Price is on the vertical axis, quantity is on the horizontal axis, demand is downward-sloping, supply is upward- sloping, and be sure to label equilibrium price and equilibrium quantity. Step 2. Change colors! If you have a highlighter or colored pencil (crayon, sharpie, whatever). Step 3. Show the change in demand or supply (only one curve will shift in each scenario). State if the curve decreases or increases. Step 4: Show the new equilibrium price and equilibrium quantity. Step 5: Repeat Steps 1-4 for each scenario. You will have a total of 4 graphs. • Scenario A: A hurricane destroys refineries that produce gasoline. • Scenario B: Consumers purchase electric vehicles that do not need gasoline. • Scenario C: Technological innovation occurs that reduces the cost of producing gasoline. • Scenario D: Road trips become the one and only vacation option and many families opt for long-distance road trips.

You will analyze the Market for Gasoline Step 1: Draw a supply-and-demand diagram. Price is on the vertical axis, quantity is on the horizontal axis, demand is downward-sloping, supply is upward- sloping, and be sure to label equilibrium price and equilibrium quantity. Step 2. Change colors! If you have a highlighter or colored pencil (crayon, sharpie, whatever). Step 3. Show the change in demand or supply (only one curve will shift in each scenario). State if the curve decreases or increases. Step 4: Show the new equilibrium price and equilibrium quantity. Step 5: Repeat Steps 1-4 for each scenario. You will have a total of 4 graphs. • Scenario A: A hurricane destroys refineries that produce gasoline. • Scenario B: Consumers purchase electric vehicles that do not need gasoline. • Scenario C: Technological innovation occurs that reduces the cost of producing gasoline. • Scenario D: Road trips become the one and only vacation option and many families opt for long-distance road trips.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter5: Markets In Motion And Price Controls

Section: Chapter Questions

Problem 10P

See similar textbooks

Similar questions

hello, please help me!! You only choose one secinario and draw about it. please make sure which one you choose.
Hello, please help me with this question. I already did scenario A. please help me with the rest!!!
Scenario 2: The Ministry of health publishes a study finding that coffee drinking reduces the probability of getting cancer. How do you imagine this will affect the market for coffee? Why? Which determinant of demand or supply is being affected? Explain. Show graphically the changes in demand or supply. Will this change the equilibrium price and quantity of coffee? Explain your reasoning.
Suppose government has been able to reduce the level of tobacco consumption in the country through a social campaign. a) Properly labeling the axes, draw a figure showing the current supply of and demand for tobacco and equilibrium price and quantity demanded and supplied. b) Provide a brief explanation about new equilibrium price
How does the equilibrium price and quantity change when here are bad rumors about a product? Are there any changes or none? Provide a graph of your answer
Part 1: What do you think should be done in a situation when the price for an essential product (name the product and explain why you believe to be "essential" in your post!!) is rising rapidly? Put the name of the essential product in your subject line. Do not choose gasoline! Part 2: Now answer each of the following questions either "Yes" or "No," giving reasons in each case! 1. Is it right for businesses to earn fat profits on goods that people rely on? (Yes/No) Why? 2. Is it right for the government to intervene in such circumstances? (Yes/No) Why? 3. Should the government always intervene? Never ever intervene? (Yes/No) Why do you think so?
Consider a market for Ice Cream an inferior good in Pakistan. For each of the given events, identify which of the determinants of the demand or supply are affected. Also indicate whether demand or supply increase or decreases. Then draw a diagram to show the effect on the price and quantity of Ice Cream and solve all the subparts: News reports claim that the consumption of Ice Cream is good for the health of coronavirus patients. There has been a decline in wages of all employees in Pakistan due to the third wave of coronavirus. People in Pakistan decide to have more children. Students of NED University develop new automated machinery for the production of Ice Cream. There has been a decrease in people’s income due to COVID-19 crisis. i News reports claim that the consumption of Ice Cream is good for the health of coronavirus patients. identify which of the determinants of the demand or supply are affected. Also indicate whether demand or supply increase or decreases…
Demand and supply often shift in the retail market for gasoline. Here are two demand curves and two supply curves for gallons of gasoline in the month of May in a small town in Maine. Some of the data are missing. Using the table, answer the following questions: Quantities Demanded Quantities Supplied Price D1 D2 S1 S2 $ 4.00 5,000 7,500 9,000 9,500 6,000 8,000 8,000 9,000 2.00 8,500 8,500 9,000 5,000 Instructions: Enter your answers as whole numbers. A) use the following facts to fill in the missing data in the table. If demand is D1 and supply is S1, the equilibrium quantity is 7,000 gallons per month. When demand is D2 and suppy is S1, the equilibrium price is $ 3.00 per galllon. When demand is D2 and supply is S1, there is an excess demand of 4,000 gallons per month at a price of $ 1.00 per gallon. If demand is D1 and supply is S2, the equilibrium quantity is 8,000 gallons per month. B) Compare the two…
The city of Cedar Rapids has a large number of video poker arcades. The demand by patrons for the games (in thousands per week) is Qd = 180 - 4P and the supply is Qs = 2P - 30 where P is the price in cents charged to play a game. What is the equilibrium number (quantity) of games played? What is the equilibrium price? Draw a diagram depicting the equilibrium in this market.
Draw a supply and demand graph showing an equilibrium price of $50 and an equilibrium quantity of 200 units. Explain what would happen if the selling price was $75, and illustrate this on the graph. Explain what would happen if the selling price was $25, and illustrate this on the graph. Be sure to label each axis and curve on the graph. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Only typed answer and please answer correctly
What happens to the equilibrium price and quantity of a good (such as alcohol) if you prohibit its use and sale? Demonstrate using supply and demand graphical analysis.