10. Graph the demand and supply curves and show the equilibrium price and quantity.
11. At a price of $3 per gallon, would there be a surplus or shortage of gasoline? How much
would the surplus or shortage be? Indicate the surplus or shortage on the graph.
12. At a price of $6 per gallon, would there be a surplus or shortage of gasoline? How much
would the surplus or shortage be? Show the surplus or shortage on the graph.
13. Suppose the quantity demanded increased by 2,000 gallons per month at each price. At
a price of $3 per gallon, how much would the surplus or shortage be? Graph the demand
and supply curves and show the surplus or shortage.
14. Suppose the quantity supplied decreased by 2,000 gallons per month at each price for
prices between $4 and $8 per gallon. At prices less than $4 per gallon the quantity
supplied becomes zero, while the quantities demanded retain the values shown in the
table. At a price of $4 per gallon, how much would the surplus or shortage be? Graph the
demand and supply curves and show the surplus or shortage.
15. If the demand curve shifts as in problem 13 and the supply curve shifts as in problem 14,
without drawing a graph or consulting the data, can you predict whether equilibrium
price increases or decreases? What about equilibrium quantity? Now draw a graph that
shows what the new equilibrium price and quantity are.
ed on the pdf file.
