Instructions: This assignment will continue to help you to apply what you have learned about the supply and demand model. Please work together in a group to answer this question.  

  1. After viewing the lecture for this week, what form of equity might be valued in the market gasoline (bring this answer to your group discussion with justification)?
  2. Compare and contrast at least two forms of equity in your answer and select one for the gasoline market with a justification (underline the two forms considered and the one form chosen in your group’s answer).
  3. Consider the importance of this type of outcome compared to an efficient outcome (describe what an allocative efficient outcome would be in the gasoline market). Is there consensus in your group about which outcome (equity or efficiency) is preferred for a good like gasoline?

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