Suppose the price of gasoline is $1.00. Will the quantity demanded be lower or higher than at the equilibrium price of $1.40 per gallon? Will the quantity supplied be lower or higher? Is there a shortage or a surplus in the market? If so, of how much?

Quantity supplied will be lower.

There'll be a shortage in the market.

Explanation:

The supply of a good or service had to do with the amount of that good that customers or consumers will buy from the person selling the good at a certain price and time.

In this case, since the equilibrium price is $1.40 and the price of gasoline is $1.00, this means that there'll be an increase in the quantity demanded but suppliers will supply less due to the fall in price. Since quantity supplied will be lower than quantity demanded, there'll be a shortage in the market.

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