Table 4-B -Refer to Table 4-B

Multiple Choice

Table 4-B
$\begin{array}{ccc}\text { Price per gallon } &\text { Quantity Demanded }&\text { Quantity Supplied of } \\&\text { (thousands of gallons) }&\text { gasoline (thousands of }\\&&\text { gallons) }\\\$ 4.50 & 600 & 2,000 \\\$ 4.25 & 700 & 1,900 \\\$ 4.00 & 800 & 1,800 \\\$ 3.75 & 950 & 1,700 \\\$ 3.50 & 1,200 & 1,600 \\\$ 3.25 & 1,500 & 1,500 \\\$ 3.00 & 1,800 & 1,400 \\\$ 2.75 & 2,100 & 1,300 \\\$ 2.50 & 2,400 & 1,200\end{array}$

-Refer to Table 4-B.The government imposes a $3.25 price ceiling at the same time there is a substantial decrease in the price of sport utility vehicles.(Assume that sport utility vehicles get very low mileage per gallon.) As a result, the:

A) price of gasoline equals $3.25 per gallon and the quantity demanded equals the quantity supplied.
B) price of gasoline rises above $3.25 per gallon and a surplus of gasoline is created.
C) price of gasoline will fall below $3.25 per gallon and a shortage of gasoline is created.
D) legal price of gasoline will equal $3.25 per gallon and a shortage of gasoline is created.
E) market price and quantity traded of gasoline will both increase.