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The supply and demand for the market for gasoline is shown below where quantity is measured in millions of gallons of gas. p D From

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The supply and demand for the market for gasoline is shown below where quantity is measured in millions of gallons of gas. p D From the graph it is clear that the demand for gasoline is relatively and the supply for gasoline is relatively M. Suppose there is a hurricane that causes oil rigs and refineries in and around the Gulf of Mexico to shut down. This is an example of a negative e supply shock and, referencing the graph below, is best represented by the shift . P n 2 a s a u If there's a pricegouging law in effect preventing gas stations from raising prices, then there will be an excess supply 9 of |:| million gallons of gas. Suppose the government wants to alleviate the market imbalance. The best policy solution is to impose |:|, and the |:| would be $ |:| million. (Include two decimal places)

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