Tutorial Question 2 Supply and demand schedules for petrol Price Quantity demanded Quantity supplied (dollars per (millions of litres (millions of litres litre) per year) per year) 1.40 24 1.30 22 1.20 20 1.10 18 1.00 16 16 0.90 18 14 2. The table above presents the supply and demand schedules for petrol. a. With no government intervention in the market, what is the equilibrium price of petrol? The equilibrium quantity? b. Suppose that the government imposes a price ceiling of 90c a litre. Now what is the quantity demanded? The quantity supplied? c. With the price ceiling of 90c a litre, how much petrol do consumers buy? What is the amount of the shortage