Using the supply and demand schedules for gas shown above, answer the following questions.

1. Graph the demand and supply curves correctly labeling the axis, curves and showing the equilibrium (market) price and quantity.

1. Assume the government sets a price ceiling of $2.00 on a jar of peanut butter.
   1. Is this price ceiling binding or non-binding?
   2. Would this result in a shortage or surplus?
   3. How much would the shortage or surplus be?
   4. List two other negative outcomes that would probably occur as a result of this price ceiling?

Price ($)	Qty Demanded (Jars)	Qty Supplied (Jars)
1.50	900,000	600,000
2.00	850,000	650,000
2.50	800,000	700,000
3.00	750,000	750,000
3.50	700,000	800,000
4.00	650,000	850,000
4.50	600,000	900,000

1. 
   

Answer rating: 100% (QA)

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