Final answer:
If the price of gasoline is $1.00, the quantity demanded will be higher than at the equilibrium price of $1.40 per gallon, and the quantity supplied will be lower. There will be a shortage in the market.
Step-by-step explanation:
In Figure 3.4, the equilibrium price of gasoline is $1.40 per gallon. If the price of gasoline is $1.00, the quantity demanded will be higher compared to the equilibrium price, as consumers would be willing to buy more gasoline at the lower price. The quantity supplied, on the other hand, will be lower as producers would be less willing to supply gasoline at a lower price. This results in a shortage in the market, indicating the demand exceeds the supply.