10 Graph the demand and supply curves and show the equilibrium price and quantity 11 At a price of $3 per gallon, would there be a surplus or shortage of gasoline? How much would the surplus or shortage be? Indicate the surplus or shortage on the graph 12 At a price of $6 per gallon, would there be a surplus or shortage of gasoline? How much would the surplus or shortage be? Show the surplus or shortage on the graph 13 Suppose the quantity demanded increased by 2,000 gallons per month at each price At a price of $3 per gallon, how much would the surplus or shortage be? Graph the demand and supply curves and show the surplus or shortage 14 Suppose the quantity supplied decreased by 2,000 gallons per month at each price for prices between $4 and $8 per gallon At prices less than $4 per gallon the quantity supplied becomes zero, while the quantities demanded retain the values shown in the table At a price of $4 per gallon, how much would the surplus or shortage be? Graph the demand and supply curves and show the surplus or shortage 15 If the demand curve shifts as in problem 13 and the supply curve shifts as in problem 14, without drawing a graph or consulting the data, can you predict whether equilibrium price increases or decreases? What about equilibrium quantity? Now draw a graph that shows what the new equilibrium price and quantity are [1] Noam Scheiber, “As a Center for Outsourcing, India Could Be Losing Its Edge,” New York Times, May 9, 2004, p BU3 Attributed to Libby Rittenberg and Timothy Tregarthen Saylor URL: http://www.saylor.org/books/ Saylor.org 180