Table 17-5The table shows the town of Driveaway's demand schedule for gasoline. Assume the town's gasoline seller(s) incurs a cost of $2 for each gallon sold, with no fixed cost.Total Revenue(Dollars)0350600750800Quantity(Gallons)● c. $2 and the equilibrium quantity is 300 gallons.O d. $1 and the equilibrium quantity is 350 gallons.050100150200250300350400Price(Dollars per gallon)8765432107506003500Refer to Table 17-5. If the market for gasoline in Driveaway is perfectly competitive, then the equilibrium price of gasoline isO a. $0 and the equilibrium quantity is 400 gallons.O b. $4 and the equilibrium quantity is 200 gallons.

In a perfectly competitive market, there are many small firms that sell identical or homogeneous…

Answered: The table shows the town of Driveaway's…

The table shows the town of Driveaway's demand schedule for gasoline. Assume the town's gasolin Tot Quantity (Gallons) 0 50 100 150 200 250 300 350 400 Price (Dollars per gallon) 8 7 6 5W32 4 1 0

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Firms In Competitive Markets

Section: Chapter Questions

Problem 10PA

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Question

Table 17-5
The table shows the town of Driveaway's demand schedule for gasoline. Assume the town's gasoline seller(s) incurs a cost of $2 for each gallon sold, with no fixed cost.
Total Revenue
(Dollars)
0
350
600
750
800
Quantity
(Gallons)
● c. $2 and the equilibrium quantity is 300 gallons.
O d. $1 and the equilibrium quantity is 350 gallons.
0
50
100
150
200
250
300
350
400
Price
(Dollars per gallon)
8
7
6
5
4
3
2
1
0
750
600
350
0
Refer to Table 17-5. If the market for gasoline in Driveaway is perfectly competitive, then the equilibrium price of gasoline is
O a. $0 and the equilibrium quantity is 400 gallons.
O b. $4 and the equilibrium quantity is 200 gallons.

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