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Gasoline Price Controls. The equilibrium price of gasoline is $3.00 and the equilibrium quantity is 100 million gallons. Suppose the government sets a maximum price of $2.90. (For producers, each $0.01 increase in price increases quantity supplied by 3 million gallons.) Gasoline market 1.) Use the line drawing tool to show the maximum price. Label this line 'Price Max'. 2.) Use the point drawing tool to indicate the quantity supplied under the maximum price and label that point 'b'. Price per gallon ($) Carefully follow the instructions above, and only draw the required objects. b. At a price of $2.90, quantity supplied of gasoline will be million gallons. 704 2.604 0 20 40 60 80 100 120 140 160 180 200 Millions of gallons
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