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

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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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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