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US drivers consume billions of gallons of gas every week, and with every gallon consumed harmful emissions are released into the atmosphere. The aggregate demand
US drivers consume billions of gallons of gas every week, and with every gallon consumed harmful emissions are released into the atmosphere. The aggregate demand function for gasoline is given by P = 12 2QD, where Q is the quantity of gallons of gas per week in billions and P reflects the price per gallon in dollars. The aggregate supply function is given by P = 1 + QS . IMF economists have estimated a substantial external marginal damage of gas consumption, which we'll round to $1 per gallon
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