Chapter 8.1, Problem 65E

An important application of systems of equations arises in connection with supply and demand As the price of a product increases, the demand for that product decreases. However, at higher prices, suppliers are willing to produce greater quantities of the product. The price at which supply and demand are equal is called the equilibrium price The quantity supplied and demanded at that price is called the equilibrium quantity. Exercises 65-66 invoice supply and demand.

The table shows the price of a gallon of unleaded premium gasoline. For each price. the table lists the number of gallons per day that a gas station sells and the number of gallons per day that can be supplied.

Supply and Demand for Unleaded Premium Gasoline

Price per	Gallons Demanded	Gallons Supplied
Gallon	per Day …	per Day
$3.20	1400	200
$3.60	1200	600
$4.40	800	1400
$4.80	600	1800

Tire data in the table are described by the following demand and supply models:

a. Solve the system and find the equilibrium quantity and the equilibrium price for a gallon of unleaded premium gasoline.

h. Use your answer from part (a) incomplete this statement:

If unleaded premium gasoline is sold for _______ per

gallon, there will be a demand for _______ gallons per day and ________ gallons will be supplied per day.