1.Graph the demand and supply curves and show the equilibrium price and quantity.

2.At a price of $3 per gallon, would there be a surplus or shortage of gasoline? How much would the surplus or shortage be?

3.At a price of $6 per gallon, would there be a surplus or shortage of gasoline? How much would the surplus or shortage be?

4.Suppose the quantity demanded increased by 2,000 gallons per month at each price. At a price of $3 per gallon, how much would the surplus or shortage be?

5.Suppose the quantity supplied decreased by 2,000 gallons per month at each price for prices between $4 and $8 per gallon. At prices less than $4 per gallon the quantity supplied becomes zero, while the quantities demanded retain the values shown in the table. At a price of $4 per gallon, how much would the surplus or shortage be?

6.If the demand curve shifts as in problem 13 and the supply curve shifts as in problem 14, without drawing a graph or consulting the data, can you predict whether equilibrium price increases or decreases? What about equilibrium quantity?