consider the market for gasoline illustrated in the figure. the equilibrium quantity of gasoline is 5…

consider the market for gasoline illustrated in the figure. the equilibrium quantity of gasoline is 5 million gallons (enter your response rounded to two decimal places) and the equilibrium price is $ per gallon.

consider the market for gasoline illustrated in the figure. the equilibrium quantity of gasoline is 5 million gallons (enter your response rounded to two decimal places) and the equilibrium price is $ per gallon.

Answer

Explanation:

Step1: Locate equilibrium point

The equilibrium in a market - supply and demand diagram is the point where the supply curve (S) intersects the demand curve (D).

Step2: Read price at equilibrium

Looking at the graph, when the quantity of gasoline is 5 million gallons (the equilibrium quantity), the corresponding price on the vertical axis (price per gallon) is $2.50.

Answer:

2.50