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,the resulting quantity of gasoline that is bought and sold is
A)less than Q₃.
B)Q₃
C)between Q₁ and Q₃.
D)at least Q₁.

Question

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,the resulting quantity of gasoline that is bought and sold is
A)less than Q₃. 
B)Q₃ 
C)between Q₁ and Q₃. 
D)at least Q₁.

Quizplus · Accepted Answer

When the supply curve shifts from S₁ to S₂ under a price ceiling, the quantity supplied decreases due to the lower supply curve. Since the price ceiling keeps the price below equilibrium, the quantity bought and sold is limited by the lower quantity supplied, which is less than Q₃.

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