Suppose the government imposes a price ceiling on gasoline that is less than the equilibrium price. As a result
A) the price of gasoline rises to the equilibrium price.
B) there is incentive for buyers to undertake search activity.
C) the supply of gasoline will increase and the supply curve will shift rightward.
D) the demand for gasoline will decrease and the demand curve will shift leftward.
Correct Answer:
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Q7: A rent ceiling set above the equilibrium
Q8: A rent ceiling below the equilibrium rent
Q9: A rent ceiling results in a shortage.
Q10: A price _ is a regulated _
Q11: Search activity
A) occurs when there is a
Q13: A price ceiling, such as a rent
Q14: A price ceiling
A) makes it illegal to
Q15: A price ceiling is a price
A) below
Q16: Which of the following is an effect
Q17: Which of the following is NOT a
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