Review the following figure. Suppose the price of gasoline is $1.60 per gallon. • What would happen to the quantity dema

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Review The Following Figure Suppose The Price Of Gasoline Is 1 60 Per Gallon What Would Happen To The Quantity Dema 1 (31.65 KiB) Viewed 13 times

Review the following figure. Suppose the price of gasoline is $1.60 per gallon. • What would happen to the quantity demanded? • What would happen to the quantity supplied? • At $1.60, is the market in equilibrium, a shortage, or a surplus? P ($ per gallon) $2.20 $1.00 $1.40 $1.20 $1.00 $0.60 Excess supply or surplus An above-equilibrium prico Equilibrium price A below equilibrium price Excess demand D or shortage 300 800 900 400 500 600 700 Quantity of Gasoline (millions of gallons)