If the Equilibrium Price of Gasoline Is $3

Multiple Choice

If the equilibrium price of gasoline is $3.00 per gallon and the government will not allow oil companies to charge more than $2.00 per gallon of gasoline, which of the following will happen?

A) The market will be in equilibrium at a price of $2.00.
B) Supply must eventually increase so that the market will come into equilibrium at a price of $2.00.
C) Demand must eventually decrease so that the market will come into equilibrium at a price of $2.00.
D) A nonprice rationing system such as ration coupons must be used to ration the available supply of gasoline.