This decline in quantity reflects how consumers react to the higher price by finding ways to use less gasoline.

Moreover, at this higher price of $1.80, the quantity of gasoline supplied rises from 600 to 680, as the higher

price makes it more profitable for gasoline producers to expand their output. Now, consider how quantity

demanded and quantity supplied are related at this above-equilibrium price. Quantity demanded has fallen to

500 gallons, while quantity supplied has risen to 680 gallons. In fact, at any above-equilibrium price, the

quantity supplied exceeds the quantity demanded. We call this an excess supply or a surplus.

With a surplus, gasoline accumulates at gas stations, in tanker trucks, in pipelines, and at oil refineries. This

accumulation puts pressure on gasoline sellers. If a surplus remains unsold, those firms involved in making

and selling gasoline are not receiving enough cash to pay their workers and to cover their expenses. In this
{"creationdate": "2022-12-07T14:15:44-06:00", "source_file": "downloads\\business\\economics\\Microeconomics3e.pdf", "uploaded_via": "batch_uploader", "moddate": "2022-12-07T14:23:05-06:00", "file_hash": "830b81f41611ac67a490444dbb5d6aed292224606965b06965b914443c93331a", "creator": "PDFMiner", "file_size_mb": 26.99, "file_type": ".pdf", "batch_upload": true, "title": "Principles of Microeconomics 3e", "total_pages": 597, "file_name": "Microeconomics3e.pdf", "upload_timestamp": "2026-02-07T15:37:44.339247", "producer": "Prince 14.2 (www.princexml.com)", "source": "downloads\\business\\economics\\Microeconomics3e.pdf"}