Changes

3. When the supply of a good or service increases, such as increasing the number of oil wells, what happens to the market price of oil?  Explain.  When the demand for a good a good or service increases, such more people driving cars that need gasoline (refined oil), what happens to the market price of oil?  Explain.

3. When the supply of a good or service increases, such as increasing the number of oil wells, what happens to the market price of oil?  Explain.  When the demand for a good a good or service increases, such more people driving cars that need gasoline (refined oil), what happens to the market price of oil?  Explain.

4. Suppose 1000 persons in a town each have the following weekly demands for gas, and the gas stations have the following weekly supplies:

4. Suppose 500 persons in a town each have the following weekly demands for gas, and the gas stations have the following weekly supplies:

Gallons Demand Price/gallon Supply Price/gallon

Gallons Demand Price/gallon Supply Price/gallon

<br>30 $3 $3

<br>30 $3 $3

<br>40 $2 $4

<br>40 $2 $4

(A) What is the price and overall quantity of gas sold each week?

(A) What is the price and overall quantity of gas sold each week?