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The image you uploaded displays a demand and supply graph for gasoline. You are asked about the market condition (shortage or surplus) when the price of gasoline is $2.00 per gallon.

From the graph, the supply curve (S₁) slopes upwards, while the demand curve (D₁) slopes downwards, representing typical supply and demand relationships.

### Step-by-Step Analysis:
1. **Locate the Price of $2.00**: On the vertical axis (Price per gallon), find $2.00.
2. **Find Quantity Demanded and Supplied**: From the $2.00 price point, move horizontally across to intersect both the supply and demand curves:
   - The **demand curve** (blue) at $2.00 shows a **quantity demanded** of about **110 million gallons**.
   - The **supply curve** (red) at $2.00 shows a **quantity supplied** of about **30 million gallons**.
3. **Determine Market Condition**: Since **quantity demanded** (110 million gallons) exceeds **quantity supplied** (30 million gallons), there will be a **shortage** of gasoline. The magnitude of the shortage is the difference between the two quantities:
   \[
   110 - 30 = 80 \, \text{million gallons}.
   \]

Thus, at a price of $2.00 per gallon, there will be a **shortage of 80 million gallons**.

Would you like a more detailed explanation or have any questions about this analysis?

### Related Questions:
1. How does a surplus occur in a market?
2. What happens when demand exceeds supply in the long run?
3. How do price controls, like price ceilings, affect shortages?
4. Can government intervention eliminate shortages in the market?
5. What role does elasticity play in supply and demand shifts?

**Tip:** A shortage happens when the price is set below the equilibrium price, causing higher demand than the available supply.

If the price of gasoline is $2.00, there will be a _______ (shortage/surplus) of gasoline of _______ million gallons.

Understand how to determine the shortage or surplus in the gasoline market when the price is set at $2.00 per gallon. This problem involves analyzing the supply and demand curves to find the quantities demanded and supplied, highlighting key economic principles of market equilibrium.

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