Illustrate what is the equilibrium price

Assignment Help Business Economics
Reference no: EM1356098

Assume the following data describe the gasoline market:

Price per gallon: $2.00 2.25 2.50 2.75 3.00 3.25 3.50

Quantity demand 26 25 24 23 22 21 20

Quantity supplied 16 20 24 28 32 36 40

(a) What is the equilibrium price?

(b) If supply at every price is reduced by five gallons, what will the new equilibrium price be?

(c) If the government freezes the price of gasoline at its initial equilibrium price, how much of a surplus or shortage will exist when supply is reduced as described above?

(d) Illustrate your answers on a graph.

Reference no: EM1356098

Questions Cloud

Calculate the npv and irr of the project : A corporation' initial investment is $220 million, obtainable at the end of the plant's useful life in ten years. Your corporation uses straight line depreciation.
Journal entries for jane geddes engineering : Prepare the 2009 journal entries for all of the following transactions and adjustments. Show full computations. You can ignore dates if not given. Round all amounts to nearest dollar.
Finance based decision making question : PH Toy Corporation is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $30 and PH Toy would sell it for $65
Role of integrating business management cpabilities : How you see you role in integrating software, hardware, and business management cpabilities? What challenges do you anticipate encounting as head of of the IT management effort at Magnum?
Illustrate what is the equilibrium price : Illustrate what is the equilibrium price. If supply at every price is reduced by five gallons, what will the new equilibrium price be.
Describe and explain the purpose of a rocket pitch : Describe and explain the purpose of a rocket pitch and Imagine a potential investor has heard his rocket pitch
Applying overhead-journal entries and t-accounds : Prepare journal entries to record items (a) through (f) above [ignore item (g) for the moment]. Prepare T-accounts for Manufacturing Overhead and Work on Process. Post the relevant items from your journal entries to these T-accounts.
Describe briefly one trade topic identified by the wto : Describe briefly one trade topic identified by the WTO on the website. And, what did you learn from the Web site about the WTO.
Calculate the geometric average return : Assume a particular investment earns a return of 10% in year 1, -5% (note MINUS 5%) in year 2, and 30 percent in year 3.

Reviews

Write a Review

 

Business Economics Questions & Answers

  Demand curve for videos has shifted to the right

The demand curve for videos has shifted to the right. Illustrate what could have caused it.

  Role of the federal reserve in mitigating negative impact

Assess the role of the Federal Reserve in mitigating the negative impact of the 2008 financial meltdown on the economy.

  Nations gdp

Exportof goods and services to foreigners is $1 million and import of goods and services from foreigners is $1.5 million.

  Define the equilibrium price and quantity

Define the equilibrium price and quantity.descibe the situation at a price of $10.00.what will occur.

  Determine the quantity demand and the quantity supplied

Determine the quantity demanded, the quantity supplied, and the magnitude

  Industry in long-run competitive equilibrium

Illustrate what are the firms ATC per unit at these three levels of production. If every firm in this industry has the similar cost structure, is the industry in long-run competitive equilibrium.

  What is the specific marketplace-failure justification

illustrate what is the specific marketplace-failure justification for governing spending on public universities

  Global economic slowdown

Due to the global economic slowdown, we were benefiting from relatively low oil prices.

  Compare and contrast the facility costs of vectorcal

Compare and contrast the facility costs of VectorCal and the US Government. Determine at least two advantages for using facility costs for both VectorCal and the US Government. Explain your rationale. "Procedures of FCCOM".

  Conclude the new equilibrium cost also quantity

Assume a $6 excise tax is imposed on the good. Conclude the new equilibrium cost also quantity.

  Positive also negative consequences of such policies

Fed's policies both in terms of the positive also negative consequences of such policies also in relation to the Keynesian also classical theories.

  Illustrate what is the market elasticity of demand

Illustrate what is the market elasticity of demand. What is your elasticity of demand in this Cournot oligopoly.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd