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Suppose that initially the gasoline market is in equalibrium, at a price of $3.50 per gallon and a quantity of 65 million gallons per month
Suppose that initially the gasoline market is in equalibrium, at a price of $3.50 per gallon and a quantity of 65 million gallons per month Then a war in the Middle East disrupts imports of oil into the United States shifting the supply curve for gasoline @ from S1to 82 The price of gasoline begins to rise, and consumers protest, The federal government responds by setting a q price ceiling of $450 per gallon, Use the graph to answer the following questions, /\\ lg?) lfthere were no price ceiling, what would be the equilibrium price of gasoline the quantity of gasoline demanded, and the quantity of gasoline supplied? The equilibrium price would be :5 , the quantity demanded would be million gallons per month, and the quantity supplied would be million gallons per month. (Enter your responses rounded to two decimal places) Prlca (dollars per gallon) D 10 20 30 4O 50 GD 70 80 90100110120 Quantity (millions of gallons per month)
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