Suppose that initially the gasoline market is in equilibrium, at a price of $3.00 per gallon and a quantity of 80 million gallons per month. Then a war in the Middle East disrupts imports of oil into the United States, shifting the supply curve for gasoline from S, to S₂. The price of gasoline begins to rise, and consumers protest. The federal government responds by setting a price ceiling of $4.50 per gallon. Use the graph to answer the following questions. If there were no price ceiling, what would be the equilibrium price of gasoline, the quantity of gasoline demanded, and the quantity of gasoline supplied? The equilibrium price would be $, the quantity demanded would be million gallons per month, and the quantity supplied would be million gallons per month. (Enter your responses rounded to two decimal places.) Price (dollars per gallon) 12.00- 11.00- 10.00- 9.00- 8.00- 7.00- 6.00 5.00 4.00- 3.00- 2.00- 1.00- 0.00- 0 S₂ S (C ce ceiling 10 20 30 40 50 60 70 80 90 100 110 120 Quantity (millions of gallons per month)

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