Rising fuel prices is an all too common occurrence in Jamaica. Yesterday it was announced that motorists should pay more for gasoline at the pumps, as 87- and 90-octane gasoline will be sold for $125.00 and $130.00 per litre, respectively, up by $8.00 each. The sudden rise in gas price has resulted in several riots in the past. The last riot was in April 1999, when demonstrators took to the streets to protest a hike in the fuel tax. 1. The president of the Jamaica Gasoline Retailers Association (JGRA) calls for the government to put a cap on the gas prices. Explain the implication price ceiling on gasoline below the equilibrium price. (3 marks) 2. For each of the following scenarios write "increase" or "decrease" in the space provided to indicate in each case the impact on equilibrium quantity (Q) and equilibrium price (P) for gasoline and illustrate the scenario on a graph Equilibrium Scenarios Price (P) Quantity (Q) a) disruptions to oil supplies caused by hurricanes b) an increase in the price of automobiles c) buyers buy SUVs that are larger and obtain fewer miles per gallon d) A technological innovation that reduces oil spills during production (4 marks)