Background: In 2019, North Carolina consumed 114,526 thousand barrels of gasoline which is about 4.8 billion gallons. Gasoline demand and supply are both quite inelastic, which means that they don't respond much to changes in prices. Short-run demand elasticities have been estimated around -0.2. This means that if the price of gasoline increases by 10%, consumption of gasoline decreases by 2%. Supply elasticities are estimated around 0.1 which means that if the price of gasoline increases by 10%, the supply of gasoline increases by 1%. The supply and demand curves below are roughly consistent with these facts. Let annual demand for gasoline in North Carolina be given by 13(3)) 2 6 0.531 where demand is measured in billions of gallons and p is the price in $ per gallon. Let annual supply in North Carolina be given by S (p) = 4.2 + 0.4-1], where supply is also in billions of gallons. | 1) Demand eurveDQD) = 6 0.5;) a. Sketch the demand curve. Don't forget to put price on the y-axis! (Hint: I recommend using desmos.com. To get the axes correct in desmos.com, you need to enter it = 6 0.53:.) b. Quantity demanded: If the gasoline price is $3, how much gasoline is demanded? Ifthe price is $2? Ifthe price is $1.50? (Hint: You can either use the formula or click on the points in desmos.com.) i. How does quantity demanded change as the price falls? c. Expenditures: Ifthe gasoline price is $3, how much money would NC consumers spend on gasoline? If the price is $2? If the price is $1.50? i. How do expenditures change as the price falls? d. Consumer surplus: If the gasoline price is $3, how much consumer surplus do NC consumers receive from gasoline? che price is $2? che price is $1.50? (Hint: Consumer surplus is a triangle.) i. How does consumer surplus change as the price falls