Question

1. A group of economist studied the gasoline market. They wanted to find out how many gallons consumers would buy each day at various prices. Let us suppose that through market research, they found that If the price of a gallon of gasoline was People would buy

$1.40      55 million gallons

1.80 40 million gallons

2.20 25 million gallons

2.60 10 million gallons

3.00 5 million gallons

3.40 1 million gallons

This information is called a demand schedule. Plot the data on the blank graph and connect the dots with a line a label it D1. Graph scale: price should increase in 20 cents increments beginning at $1.20 and quantity should increase in 10 million gallon increments beginning at 10 million

Answer 1

The data on a graph is plotted and the dots are connected with a line and labelled as D1 as shown below. D1 is the demand curve.The Quantity is plotted on the horizontal axis and the price is plotted on the vertical axis. Quantity is in million gallons and the price is in dollar ($).

In the graph below, the price is increasing in 20 cents increments beginning at $1.20 and quantity is increasing in 10 million gallon increments beginning at 10 million.