Question: 1. Draw a supply and demand graph for Hershey's chocolate bar. Show the market at an equilibrium price of $3 and equilibrium quantity of 100.

1. Draw a supply and demand graph for Hershey's chocolate bar. Show the market at an equilibrium price of $3 and equilibrium quantity of 100. If the number of buyers increase and the number of sellers decrease, what is the effect on the equilibrium price and equilibrium quantity. Explain and show the change on the graph.

2. Using a supply and demand graph for gasoline starting atan equilibrium price of $5.00 per gallon and a quantity of 20 gallons, show the effect of a government price flooron gasoline of $2.50 a gallon. Is this a binding price floor? Why or why not? Please explain.

3. Evaluate the following statement. The price of gasolineincreases, and at the same time the demand for gasoline increases.

I really need an explanation as to how this works, so I can learn.

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2. Find out if there are other reference points that can be used as reasonable alternatives.

1. Identify your reference point when making a decision based on an element of risk.

3. If there are reasonable alternatives, think about your decisions based on the different reference points and see if there are any contradictions in the decisions.