1. Gas prices increased to well over $2.80 per gallon this month.This means that:

a. There had been a shortage of gas right before prices began to fall.

b. The information being conveyed was that the price of gasoline was above equilibrium before the price increased.Now, because of higher prices, there is certainly a shortage of gas.

c. Quantity demanded was less than quantity supplied right before prices started to rise.Now, the gasoline market is most likely closer to, or at, an equilibrium condition.

d. As prices have increased demand has decreased, leading the market to a place where the invisible hand no longer is putting upward pressure on prices.

e. B and D only.