36. On November 14-15, 2021 an "atmospheric river" dropped close to 100mm of rain in a very short period in the Vancouver region. The rain washed out roads, rail lines, and damaged the rans-mountain pipeline that delivered oil and gas to the Fraser Valley. Although gas prices did not immediately change the provincial government felt it necessary to impose a "30 liter quota" for every visit to the gas station.

Suppose that the damage to the pipeline caused a reduction in the supply of gasoline to the Fraser Valley market. In a graph show what would have happened had the government done nothing. Would there have been a shortage of gas?

• Now suppose everything remained the same as in (a), but the government instituted the 30 liter quota. Suppose also, that the quota was set exactly at the Q* you found in (a) after the shift in supply. On a graph show what would now be expected to happen.
• What actually happened: i) there was no change in price, and ii) people lined up. In a supply and demand graph, show why these things happened.
• Within days drivers realized that gas stations could not enforce the quota.

Drivers could purchase however much gasoline they wanted. There was no shortage of gas, and the lines disappeared. Reterring to your graph in (C), explain why this happened.

e. Given your answers to (a) to (d), was the government's policy a good one?