Task 2: Interpreting Graphs
The student will identify and explain specific effects of price controls at given prices.
Using the hypothetical information in the table on the market for gasoline, complete the following questions:
Price of Gasoline (per gallon)
Quantity Demanded (millions of gallons per week)
Quantity Supplied (millions of gallons per week)
$0.50
85
0
$1.00
75
15
$1.50
65
20
$2.00
55
25
$2.50
45
30
$3.00
35
35
$3.50
25
45
$4.00
15
55
Graph the demand and supply for gasoline using the myeconlab grapher software http://www.mathxl.com/info/grapher.aspx. Please start your graph at the origin and label each axis and each curve.
Screenshot instructions: To paste the graphed image on a Word document, press and hold âALT,â then press âPrtScrnâ while viewing the graphed image. Select a point on the Word document to paste the graph. Press and hold âCrtl,â then press âV.â
(Note: Change the numbers on each axis. Label each axis and each curve. Start your graph from the origin.)
Fill in the blanks highlighted in yellow.
B. The equilibrium price of gasoline is _________ and the equilibrium quantity is _____________.
C. The government imposes a price ceiling of $2.50 in this market. The prevailing price in this market is now _________. The quantity demanded is now _____________ and the quantity supplied is _____________.
D. The price ceiling results in a (SURPLUS OR SHORTAGE) _______________________ in the amount of _______________________.
Submission Requirements:
Attach a separate Word document for each task; all answers should be included in this document.
Myeconlab grapher software must be used for the graphed image.
A screen shot of the graphed image must be pasted to the Word document. Directions are listed within the assessment.
Task 2: Interpreting Graphs
The student will identify and explain specific effects of price controls at given prices.
Using the hypothetical information in the table on the market for gasoline, complete the following questions:
|
Price of Gasoline (per gallon) |
Quantity Demanded (millions of gallons per week) |
Quantity Supplied (millions of gallons per week) |
|---|---|---|
|
$0.50 |
85 |
0 |
|
$1.00 |
75 |
15 |
|
$1.50 |
65 |
20 |
|
$2.00 |
55 |
25 |
|
$2.50 |
45 |
30 |
|
$3.00 |
35 |
35 |
|
$3.50 |
25 |
45 |
|
$4.00 |
15 |
55 |
Graph the demand and supply for gasoline using the myeconlab grapher software http://www.mathxl.com/info/grapher.aspx. Please start your graph at the origin and label each axis and each curve.
Screenshot instructions: To paste the graphed image on a Word document, press and hold âALT,â then press âPrtScrnâ while viewing the graphed image. Select a point on the Word document to paste the graph. Press and hold âCrtl,â then press âV.â
(Note: Change the numbers on each axis. Label each axis and each curve. Start your graph from the origin.)
Fill in the blanks highlighted in yellow.
B. The equilibrium price of gasoline is _________ and the equilibrium quantity is _____________.
C. The government imposes a price ceiling of $2.50 in this market. The prevailing price in this market is now _________. The quantity demanded is now _____________ and the quantity supplied is _____________.
D. The price ceiling results in a (SURPLUS OR SHORTAGE) _______________________ in the amount of _______________________.
Submission Requirements:
Attach a separate Word document for each task; all answers should be included in this document.
Myeconlab grapher software must be used for the graphed image.
A screen shot of the graphed image must be pasted to the Word document. Directions are listed within the assessment.
