Table 17-10
The table shows the town of Driveaway's demand schedule for gasoline. Assume the town's gasoline seller(s) incurs a cost of $2 for each gallon sold, with no fixed cost.

-Refer to Table 17-10.If the market for gasoline in Driveaway is perfectly competitive,then the equilibrium price of gasoline is

Question

Table 17-10
The table shows the town of Driveaway's demand schedule for gasoline. Assume the town's gasoline seller(s) incurs a cost of $2 for each gallon sold, with no fixed cost.
 
-Refer to Table 17-10.If the market for gasoline in Driveaway is perfectly competitive,then the equilibrium price of gasoline is

Quizplus · Accepted Answer

In a perfectly competitive market, the equilibrium price and quantity are determined at the intersection of the demand and supply curves. The supply curve in this case is equal to the marginal cost of production, which is $2 per gallon. At a price of $2 per gallon, the quantity supplied will be 300 gallons, which is equal to the quantity demanded. Therefore, the equilibrium price of gasoline in Driveaway is $2 and the equilibrium quantity is 300 gallons.

Table 17-10 the Table Shows the Town of Driveaway's Demand Schedule for Schedule