Price (per gallon) Quantity demanded (millions of gallons) 800 Quantity supplied (millions of gallons) $1.00 $1.20 $1.40 $1.60 $1.80 $2.00 $2.20 500 550 700 600 600 550 640 500 680 460 700 420 720 1. Plot demand curve and supply curve in one graph. Identify the equilibrium point. 2. Determine price elasticity of demand and supply between 1.20 and 1.60. Give the category for each. 3. Add another column to the right and identify for each combination, whether there is shortage or surplus.
Price (per gallon) Quantity demanded (millions of gallons) 800 Quantity supplied (millions of gallons) $1.00 $1.20 $1.40 $1.60 $1.80 $2.00 $2.20 500 550 700 600 600 550 640 500 680 460 700 420 720 1. Plot demand curve and supply curve in one graph. Identify the equilibrium point. 2. Determine price elasticity of demand and supply between 1.20 and 1.60. Give the category for each. 3. Add another column to the right and identify for each combination, whether there is shortage or surplus.
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter7: Demand And Supply
Section7.2: The Demand Curve And Elasticity Of Demand
Problem 1R
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Transcribed Image Text:Quantity demanded
(millions of gallons)
Price (per gallon)
Quantity supplied
(millions of gallons)
$1.00
$1.20
$1.40
$1.60
$1.80
$2.00
$2.20
800
500
700
550
600
600
550
640
500
680
460
700
420
720
1. Plot demand curve and supply curve in one graph. Identify the equilibrium point.
2. Determine price elasticity of demand and supply between 1.20 and 1.60. Give the category for each.
3. Add another column to the right and identify for each combination, whether there is shortage or
surplus.
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