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Is the demand curve the same as quantity demanded - illustrate with a diagram.
A) Examine the table given; draw the demand and supply schedules and determine equilibrium quantity and price
Price per gallon (in $) Quantity demanded Quantity Supplied
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
B) Suppose the price of gasoline is $1.60 per gallon, is the quantity demanded higher than or lower than he equilibrium price? What about the quantity supplied? Will there be a shortage or surplus in the market? If so, by ow much is the shortage or surplus?
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