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Hi, I need help with this. Assume continuous, straight line demand and supply curves which include the following data points for Gasoline: 1'. n n

Hi, I need help with this.

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Assume continuous, straight line demand and supply curves which include the following data points for Gasoline: 1'. n n \"5- Use this information to answer the following questions: A. Suppose that the current price of gasoline is $2 per unit. At this price, how many units of gasoline will be transacted between suppliers and demanders in this market? Briey explain your reasoning. B. Would all suppliers willing to supply the good at a price of $2 per unit be able to nd a buyer? Briey explain your reasoning. C. In the absence of any kind of government intervention, would we expect the price of gasoline to stay at $2 per unit? If yes, briey explain. If no then indicate what will happen to the price and why. D. If the government restricted output in this market to 8,000 units, would this be an efcient outcome? If yes, briey explain your reasoning. If no, calculate the size of the inefciency, in dollar terms, that would result from this policy

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