Suppose Congress Passes a Law That States the Price of Gasoline

Multiple Choice

Suppose Congress passes a law that states the price of gasoline may not exceed $6 per gallon (but may be lower) . If the current price of gasoline is less than $6, what impact does this law have on the current price and quantity of gasoline in the US market?

A) There is a shortage of gasoline
B) There is a surplus of gasoline
C) Quantity supplied currently equals quantity demanded, but a surplus is possible at prices above $6
D) The law currently has no impact, and the market clears at the equilibrium price