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Figure 4-19 Refer to Figure 4-19. When the Price Ceiling Applies in Ceiling

Question 41

Multiple Choice

Figure 4-19 Figure 4-19 Refer to Figure 4-19. When the price ceiling applies in this market and the supply curve for gasoline shifts from S<sub>1</sub> to S<sub>2</sub>, A) the price will increase to P<sub>3</sub>. B) a surplus will occur at the new market price of P<sub>2</sub>. C) the market price will stay at P<sub>1</sub> due to the price ceiling. D) a shortage will occur at the price ceiling of P<sub>2</sub>.
Refer to Figure 4-19. When the price ceiling applies in this market and the supply curve for gasoline shifts from S1 to S2,


A) the price will increase to P3.
B) a surplus will occur at the new market price of P2.
C) the market price will stay at P1 due to the price ceiling.
D) a shortage will occur at the price ceiling of P2.

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