In the aftermath of hurricane Odile, parts of the Baja Peninsula have been isolated so that the transportation of gasoline to consumers has become very difficult. Local authorities in various locations have tried various ways to address the situation.

In some places, local authorities have decided to distribute a certain amount of gasoline for free, so that every consumer had the right to a fixed allowance. Show and discuss the effects of this decision on the market.

In other places, local authorities have imposed a price cap on gas. Show this in a supply and demand diagram and explain the consequences.