(4 points) When gas prices are $2.73 per gallon, the annual supply for gas in New York State is 135 billion gallons and the annual
demand is 141 billion gallons. When the price increases to $3.26 per gallon, the annual supply increases to 147 billion gallons and the
demand decreases to 137 billion gallons.
(a) Assuming that the supply and demand equations are linear, Ofind the supply and demand equations.
Supply Equation p=
Demand Equation pw
Note: The equations should be in the form p = ma + b where p denotes the price (in dollars) and q denotes the quantity billions)
The slope and y-intercept should include 3 decimal places, or be left as fractions.
(b) Find the market price and quantity.
market price pe
market quantity q
Note: The market price and quantity should include 3 decimal places (or left as fractions), and the market price should includa dollar
sign.