1. Supply and Demand Schedules for A Gallon of Gasoline

Price Quantity Supplied Quantity Demanded

$4.00 6500 8000

$5.00 7000 7000

$6.00 7500 6000

$7.00 8000 5000

$8.00 8500 4000

Complete parts a, b, and c and part d

a. Graph the supply and demand schedules in a supply curve and demand curve respectively, on one graph.

b. What are the equilibrium price and quantity?

c. Show on your graph from part a and explain how the sanctions being placed upon Russia as a result of their actions in the Ukraine has affected the world market for the gallons of gasoline. Label what you did as R.

d. If the government determined that the price for the gallon of gas in the marketplace should be set at $4.00, would this indicate that they were setting a price ceiling or a price floor? At this price of $4.00, how many gallons of gas will be sold?