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This is the assignment I have this week and not able to complete it in time.
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Running head: SUPPLY DEMAND ANALYSIS
Supply Demand Analysis
Name:
Institution:
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SUPPLY DEMAND ANALYSIS
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Labelling the price axis, the quantity axis, the demand curve, the supply curve, and the
equilibrium in the market.
Note: The point of intersection between the demand and supply represents the equilibrium in the
market.
Would there be a surplus or a shortage at a price of $6.00?
At a price of $6.00, there will be a surplus in the quantity of gasoline, it will be approximately
140.
SUPPLY DEMAND ANALYSIS
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Would there be a surplus or a shortage at a price of $2.00?
At a price of $2.00, there will be a shortage in the quantity of gasoline, it will be approximately
75.
Would a price ceiling on gasoline lead to a surplus or shortage?
A price ceiling exists when a government puts a restrictive limit on how high the value of
a commodity can be. For a cap to become effective, it must be set below the market equilibrium.
Price ceilings are problematic when they are set below ...