Recent studies have found the short-run price elasticity of demand for gasoline at the pump to be -0.26. Suppose that international hostilities lead to a sudden cutoff of crude oil supplies. As a result, U.S. supplies of refined gasoline drop 10 percent.

a. If gasoline was selling for $2.85 per gallon before the cutoff, how much of a price increase would you expect to see in the coming months? 

b. Suppose that the government imposes a price ceiling on gas at $2.85 per gallon. How would the relationship between consumers and gas station owners change?