Homework SourseA what is the equilibrium price per gallon B how much of a
(A) what is the equilibrium price? $____ per gallon
(B) how much of a market surplus would exist if the government set a price floor of $4 per gallon? There would be a ____ gallon surplus
Given the following data on gasoline supply and demand, complete the Market Total row for each table Quantity demanded (gallons per day Price per $5.00 $4.00 $3.00 $2.00 $1.00 allon 4 Al Betsy Casey Daisy Eddie Market Total 2 Quantity supplied (gallons per day $4.00 $3.00 $2.00$1.00 Price per gallorn Firm A Firm B Firm C Firm D Firm E Market Total Instructions: Enter your responses rounded to the nearest whole number Solution
Quantity Demanded Price 5 4 3 2 1 AI 1 2 3 4 5 Betsy 0 1 1 1 2 Casey 2 2 3 3 4 Daisy 1 3 4 4 6 Eddie 1 3 2 3 5 Market Total 5 11 13 15 22 Quantity Suppied Price 5 4 3 2 1 Firm A 3 3 2 2 1 Firm B 7 5 3 3 2 Firm C 6 4 3 3 1 Firm D 6 5 3 2 0 Firm E 4 2 2 2 1 Market Total 26 19 13 12 5 Req a: Equilibriumprice is $ 3 (where demand = Supply) Req b: Surplus at Price of $4 is 8 units (i.e. 19-11)
