Multiple Choice
Suppose that the free- market equilibrium price of natural gas would be $2.00 per unit, but to protect consumers the government has fixed the price at $1.50. At this ceiling price the quantity
Will be greater than the quantity _, resulting in a _ of natural gas.
A) demanded; supplied; shortage
B) demanded; supplied; reduction in equilibrium price
C) demanded; supplied; surplus
D) supplied; demanded; surplus
E) supplied; demanded; shortage
Correct Answer:
Verified
Correct Answer:
Verified
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