Answer to Question #112550 in Microeconomics for Shayab

Question

Use the following data and draw the demand and Supply graph of gasoline.
Price (per
gallon)
Quantity demanded (millions of
gallons)
Quantity supplied (millions of
gallons)
$1.00 800 500
$1.20 700 550
$1.40 600 600
$1.60 550 640
$1.80 500 680
$2.00 460 700
$2.20 420 720

Answer 1

The figure below shows the demand and the supply curves.

From the figure, the equilibrium quantity is 600 and the equilibrium price is $1.4.