Home / Questions / Price Per GallonQuantity DemandedQuantity Supplied $2 003624 $2 25 $2 50 $2 75 $300 $325 $...
Price Per GallonQuantity DemandedQuantity Supplied $2.003624 $2.25 $2.50 $2.75 $3.00 $3.25 $3.50 3526 3428 3330 3232 3134 3036 a) Graph the demand and supply curves.b) What is the equilibrium price?c) If supply at every price is reduced by 6 gallons, what will the new equilibrium price be?d) If the government freezes the price of gasoline at its initial equilibrium price, how much of a surplus orshortage will exist when supply is reduced as described in part c?
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Does present value decrease at a linear rate, at an increasing rate, or at a decreasing rate with the discount rate? Why?
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