If the equilibrium price of petrol is R10.00 per litre and the government places a price ceiling on petrol of R15.00 per litre, the result will be a shortage of petrol.

Question

Quizplus · Accepted Answer

If the equilibrium price of petrol is R10.00 per litre and the government places a price ceiling on petrol of R15.00 per litre, the price ceiling is above the equilibrium price, which means there is no effect on the market. Therefore, there would not be a shortage of petrol. However, there may be other consequences such as excess supply or black market activity.

If the Equilibrium Price of Petrol Is R10