(e) D (f) D P P Q Q Q Q Demand increases, Demand decreases, Demand increases, Demand decreases, Supply increases Supply decreases Supply decreases Supply increases Price Price Price Price Quantity I Quantity Quantity Quantity 8. Use the following graph, which represents the demand and supply conditions in the market for milk, to answer the questions listed to the right of the graph. Price X a. Suppose that the government decides that the $4 price per gallon for milk is too low for the farmers and imposes a a floor price of $4.50 on milk. What are the effects of this action? b. Draw the price support on the graph and indicate the shortage or surplus that results from this action. (gallons, millions) 9. Use the following graph, which represents the demand and supply conditions in the market for gasoline, to answer the questions listed to the right of the graph Price a. Suppose that the federal government decides that gasoline prices are too high for consumers and imposes a ceiling price of $4.00 on it. What are the 4.50 effects of this ceiling price? b. Draw the ceiling price on the graph and indicate the shortage or surplus that results from this action. 50 (gallons, millions) E Focus