The numbers marked on the horizontal axis from left to right are as follows: 20, 27, 28, 30 and 35. The numbers marked on the vertical axis from bottom to top are as follows: $1.00, $1.50 and $2.00. The graph shows a falling line labeled D and a rising line labeled S. The rising line begins at (27, $ 1.00), passes through (28, $ 1.50) and ends at (30, $ 2.00). The falling line begins at (20, $ 2.00), passes through (28, $1.50) and ends at (35, $1.00).

Refer to the above diagram for the milk market. If the price were $1.00 per gallon, then there would be

Multiple Choice

• a shortage of 8 million gallons.

• a shortage of 27 million gallons.

• a surplus of 27 million gallons.

• a shortage of 35 million gallons.

 

Price (per gallon) $2.00 $1.50 $1.00 0 D S 20 27 28 30 35 Millions of Gallons of Milk Per Week