1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
nadezda [96]
3 years ago
12

Assume gasoline is sold in a competitive market, the equilibrium price is $50 per barrel, and the equilibrium quantity is 1000 b

arrels.
(a) Using the numerical values above, draw a correctly labeled graph of the gasoline market and show each of the following.
(i) The equilibrium price
(ii) The equilibrium quantity
(b) At a price of $40 per barrel, will there be a surplus or a shortage in the market? Explain.
(c) Assume new oil wells are discovered. On your graph from part (a), show how this change will affect the equilibrium price and quantity in the market for gasoline.
(d) Assume instead there is an increase in the price of gasoline-operated automobiles. How will this change affect the market for gasoline? Explain.
(e) If both changes in part (c) and part (d) occurred simultaneously, what will happen to the equilibrium price and quantity of gasoline?

Advanced Placement (AP)
1 answer:
sp2606 [1]3 years ago
8 0

Answer:

(a) Please find attached, the required graph showing the equilibrium price at $50 per barrel

(b) There will be a shortage

(c) Please find attached, the graph showing change in demand due to increased supply from the new oil well

(d) When there is an increase in the price of gasoline operated automobiles, there would be a downward shift in demand while supply would remain constant, and the equilibrium price will decrease

(e) The combined effect will be a further reduction in the price per barrel

Explanation:

The equilibrium price  

(a) Please find attached, the required graph

(b) As shown on the graph, in a competitive market, at a price of $40 per barrel, there will be a shortage in the market due to the amount of money available will be more than the total price of the number of barrel for sale, because the equilibrium price at which the amount of money available in the market is equal to the total price of the barrels supplied gives the amount of money people a willing and able to spend on a barrel

(c) If new oil is discovered, the number of barrels supplied will be more than the amount of money available to purchase a barrel and the equilibrium price will drop

(d) When there is an increase in the price of gasoline operated automobiles, there would be a downward shift in demand while supply would remain constant, and the equilibrium price will decrease

(e) If both oil is discovered and there is an increase in the price of as operated vehicles, the result will be a further reduction in the price of a barrel of oil

You might be interested in
discuss the assertion that non formal institution have no role to play at the processing stage of the system thery is an empty r
Snowcat [4.5K]
Fawn spends hours each week managing employee shifts and schedules, time she should be spending on other restaurant operations. What can she do? O a) Start leaving more time in her week for scheduling-related tasks b) Write everything down in a weekly planner O c) Consider online inventory management software O d) Consider online scheduling software
3 0
3 years ago
Empty lakes that fill up for a short time after rainfall are called .
Sholpan [36]

Answer:

Playas

Explanation:

"A playa is a dry, vegetation-free, flat area at the lowest part of an undrained desert basin. It is a location where ephemeral lakes form during wet periods, and is underlain by stratified clay, silt, and sand, and commonly, soluble salts."

7 0
2 years ago
Which of the following is likely true of a wetland but not an ocean?
Oksi-84 [34.3K]

Answer:

The correct option is;

A. Recharges freshwater aquifers

Explanation:

Sedimentary deposits or formations of rock material with sufficient porosity for water retention are known as aquifers

The episodic movement of water from land surfaces, following a storm or other unsaturated areas into a saturated zone is known as aquifer recharge

The natural source of freshwater aquifer recharge is therefore through rainfall or surface waters from wetlands.

6 0
3 years ago
Goal_____explains that an individual will change his/her behavior only if they want to change.
irga5000 [103]

Answer:

What do u wanna say? I didn't understand

5 0
3 years ago
Read 2 more answers
What was the Hanseatic league?
timurjin [86]

Answer:

The Hanseatic League was a commercial and defensive confederation of merchant guilds and market towns in Northwestern and Central Europe. Growing from a few North German towns in the late 1100s, the league came to dominate Baltic maritime trade for three centuries along the coasts of Northern Europe.

Explanation:

4 0
3 years ago
Other questions:
  • How did the visions of Kennedy and Johnson differ from Roosevelt
    9·1 answer
  • Ciara's therapist believes that her problems are rooted in her childhood and her unconscious, and that he can help her uncover t
    8·1 answer
  • Makes the goal real"
    10·2 answers
  • The action potential causes neurotransmitters to be released into the __________. A. myelin sheath
    14·2 answers
  • What sort of information did radios bring to homes in America?
    8·2 answers
  • A scientist is testing the effect of water with different amounts of sugar on plant growth. All the plant will undergo the same
    11·1 answer
  • in the three decades after the berlin conference on africa (1884-1885), European powers occupied and colonized Africa, a process
    14·1 answer
  • I know how to live forever!!!
    7·2 answers
  • Every map projection has some degree of distortion because
    10·1 answer
  • Lauren has gross pay of $765 and federal tax withholdings of $68. Determine Lauren's net pay if she has the additional items wit
    12·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!