An important application of systems of equations arises in connection with supply and demand. As the price of a product increases, the demand for that product decreases. However, at higher prices, suppliers are willing to produce greater quantities of the product. The price at which supply and demand are equal is called the equilibrium price. The quantity supplied and demanded at that price is called the equilibrium quantity. Exercises 65–66 involve supply and demand.

The table shows the price of a gallon of unleaded premium gasoline. For each price, the table lists the number of gallons per day that a gas station sells and the number of gallons per day that can be supplied.The data in the table are described by the following demand and supply models:

a. Solve the system and find the equilibrium quantity and the equilibrium price for a gallon of unleaded premium gasoline.

b. Use your answer from part (a) to complete this statement: If unleaded premium gasoline is sold for_________ per gallon, there will be a demand for________ gallons per day and__________ gallons will be supplied per day.

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Supply and Demand for Unleaded Premium Gasoline Price per Gallons Demanded Gallons Supplied Gallon per Day per Day $3.20 1400 200 $3.60 1200 600 $4.40 800 1400 $4.80 600 1800