1. A group of economists studied the gasoline market. Create a demand curve based upon their findings from the consumer market. Label this line DI. Price/gallon People would buy $.40 55 million gallons $.80 40 million gallons $1.20 25 million gallons $1.60 10 million gallons $2.00 5 million gallons $2.40 1 million gallons 2. The economists also surveyed sellers to determine how many gallons of gasoline they would be willing to sell each day at various prices. Create a supply curve based upon their findings. Label this line S1. Price/gallon Sellers would sell $.40 25 million gallons $.80 40 million gallons $1.20 55 million gallons $1.60 70 million gallons $2.00 85 million gallons $2.40 90 million gallons 3. According to the graph, the market-clearing (equilibrium) for gasoline is Label the equilibrium point El. 4. Assume that gas-guzzling cars are the latest fad. Because consumers buy so many gas guzzlers, they want to buy 30 million more gallons of gasoline per day at every price. For example, at $.40 per gallon people now want to buy 85 million gallons rather than 55 million gallons. Plot the new demand curve and label this line D2. Label the new equilibrium point E2. 5. Assume that 2 oil-producing countries go to war and the sellers are now willing to sell 20 million fewer gallons of gasoline per day at every price. For example, at $.40 per gallon sellers are willing to sell only 5 million gallons rather than 25 million gallons. Plot the new