Your grandmother has just passed away and left you her favorite necklace. You always loved your grandmother and will miss her greatly. You want to keep the necklace as a way to remember her, and you would never sell the necklace for any amount of money. Use the Y-axis on the graph to the right to demonstrate the following: 1.) Using the line drawing tool, draw the supply curve for your grandmother's necklace. Properly label this line. 2.) Using the point drawing tool, determine the equilibrium price for the necklace. Label this point 'E". Carefully follow the instructions above and only draw the required objects. If you are not willing to sell the necklace for any amount of money, why is there an equilibrium price (particularly a price in thousands of dollars) for the necklace? (0 A. The diagram reflects the fact that quantity demanded and quantity supplied are not equal. () B. The necklace's price is determined by supply. Thus, itis a supply-determined item. () C. The equilibrium price simply reflects that, for this demand-determined item, you are the highest bidder. () D. The diagram is incorrect, because it does not adequately reveal your preferences. Price (thousands of dollars) 1 Market for Your Grandmother's Necklace Quantity o P In 1973 and 1974, the Organization of the Petroleum Exporting Countries (OPEC) imposed an embargo on shipments of crude oil to the United States. What followed was a drastic reduction in the quantity of gasoline available at local gas pumps. Congress imposed a price ceiling, or maximum price, of $0.57 per gallon of leaded regular gasoline. That price ceiling was intended to keep gasoline "affordable." 1.) Using the line drawing tool, depict the effect of the crude oil embargo such that the free-market price would rise to $1.50 per gallon. (Draw any shift in a line parallel to the original line.) Properly label this line. 2.) Using the point drawing tool, illustrate the quantity supplied at the price ceiling of $0.57 per gallon. Carefully follow the instructions above and only draw the required objects. After the price ceiling was imposed at the original equilibrium price of $0.57 per gallon, quantity demanded was quantity supplied. This Ijl would be eliminated because prices El with price rationing. Price per gallon ($) U.S. Gasoline Market 1972-1974 Q Q S1972 = P s s s e s B G Price Ceiling D1g74 Gallons per year