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Suppose that initially the gasoline market is in equilibrium, at a price of $3.00 per gallon and a quantity of 80 million gallons per month. Then a war in the Middle East disrupts imports of oil into the United States, shifting the supply curve for gasoline from S, to S₂. The price of gasoline begins to rise, and consumers protest. The federal government responds by setting a price ceiling of $4.50 per gallon. Use the graph to answer the following questions. If there were no price ceiling, what would be the equilibrium price of gasoline, the quantity of gasoline demanded, and the quantity of gasoline supplied? The equilibrium price would be $, the quantity demanded would be million gallons per month, and the quantity supplied would be million gallons per month. (Enter your responses rounded to two decimal places.) Price (dollars per gallon) 12.00- 11.00- 10.00- 9.00- 8.00- 7.00- 6.00 5.00 4.00- 3.00- 2.00- 1.00- 0.00- 0 S₂ S (C ce ceiling 10 20 30 40 50 60 70 80 90 100 110 120 Quantity (millions of gallons per month)

Suppose that initially the gasoline market is in equilibrium, at a price of $3.00 per gallon and a quantity of 80 million gallons per month. Then a war in the Middle East disrupts imports of oil into the United States, shifting the supply curve for gasoline from S, to S₂. The price of gasoline begins to rise, and consumers protest. The federal government responds by setting a price ceiling of $4.50 per gallon. Use the graph to answer the following questions. If there were no price ceiling, what would be the equilibrium price of gasoline, the quantity of gasoline demanded, and the quantity of gasoline supplied? The equilibrium price would be $, the quantity demanded would be million gallons per month, and the quantity supplied would be million gallons per month. (Enter your responses rounded to two decimal places.) Price (dollars per gallon) 12.00- 11.00- 10.00- 9.00- 8.00- 7.00- 6.00 5.00 4.00- 3.00- 2.00- 1.00- 0.00- 0 S₂ S (C ce ceiling 10 20 30 40 50 60 70 80 90 100 110 120 Quantity (millions of gallons per month)

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Suppose that initially the gasoline market is in equilibrium, at a price of $3.00 per gallon and a quantity of 80 million gallons per month. Then a war in the Middle East disrupts imports of oil into the United States, shifting the supply curve for gasoline from S, to S₂. The price of gasoline begins to rise, and consumers protest. The federal government responds by setting a price ceiling of $4.50 per gallon. Use the graph to answer the following questions. If there were no price ceiling, what would be the equilibrium price of gasoline, the quantity of gasoline demanded, and the quantity of gasoline supplied? million The equilibrium price would be $, the quantity demanded would be gallons per month, and the quantity supplied would be million gallons per month. (Enter your responses rounded to two decimal places.) C Price (dollars per gallon) 12.00- 11.00- 10.00- 9.00- 8.00- 7.00- 6.00 5.00 4.00- 3.00- 2.00- S₂ S ce ceiling C 1.00- 0.00- 0 10 20 30 40 50 60 70 80 90 100 110 120 Quantity (millions of gallons per month)
Transcribed Image Text:Suppose that initially the gasoline market is in equilibrium, at a price of $3.00 per gallon and a quantity of 80 million gallons per month. Then a war in the Middle East disrupts imports of oil into the United States, shifting the supply curve for gasoline from S, to S₂. The price of gasoline begins to rise, and consumers protest. The federal government responds by setting a price ceiling of $4.50 per gallon. Use the graph to answer the following questions. If there were no price ceiling, what would be the equilibrium price of gasoline, the quantity of gasoline demanded, and the quantity of gasoline supplied? million The equilibrium price would be $, the quantity demanded would be gallons per month, and the quantity supplied would be million gallons per month. (Enter your responses rounded to two decimal places.) C Price (dollars per gallon) 12.00- 11.00- 10.00- 9.00- 8.00- 7.00- 6.00 5.00 4.00- 3.00- 2.00- S₂ S ce ceiling C 1.00- 0.00- 0 10 20 30 40 50 60 70 80 90 100 110 120 Quantity (millions of gallons per month)
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Now assume that the price ceiling is imposed and that there is no black market in gasoline. What are the price of gasoline, the quantity of gasoline demanded, and the quantity of gasoline supplied? The price of gasoline is $, the quantity demanded is million gallons per month, and the quantity supplied is responses rounded to two decimal places.) million gallons per month. (Enter your
Transcribed Image Text:Now assume that the price ceiling is imposed and that there is no black market in gasoline. What are the price of gasoline, the quantity of gasoline demanded, and the quantity of gasoline supplied? The price of gasoline is $, the quantity demanded is million gallons per month, and the quantity supplied is responses rounded to two decimal places.) million gallons per month. (Enter your
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