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 $0.57 per gallon. Carefully follow the instructions above and only draw the required objects. U. S. Gasoline Market 1972-1974 0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 Gallons per year Price per gallon ($) Upper D 1974Upper S 1972 Price Ceiling 0.57 interactive graph Click the graph, choose a tool in the palette and follow the instructions to create your graph.