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

Multiple Choice

Figure 4-19

-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.