Use the following to answer question:
-(Figure: Demand and Supply of Gasoline) Use Figure: Demand and Supply of Gasoline.Given the initial equilibrium of S₁ and D,any price lower than _____ will exert pressure for the price to _____.

Question

Use the following to answer question:

-(Figure: Demand and Supply of Gasoline) Use Figure: Demand and Supply of Gasoline.Given the initial equilibrium of S₁ and D,any price lower than _____ will exert pressure for the price to _____.

Quizplus · Accepted Answer

At any price lower than $2.50, the quantity demanded exceeds the quantity supplied, creating a shortage. This shortage puts upward pressure on the price, causing it to rise.

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