More than 80 percent of the home heating oil used in the United States goes to the Northeast. In Vermont, the vast majority of people there use oil to stay warm when it's cold outside. Richard Izor heats his home with oil and inquires, "I'd like to see them come in and put a ceiling on the oil price now before it gets any higher. Why they haven't done this is more than I can understand." Which of the following is NOT likely to occur if such a price ceiling was imposed?

Question

Quizplus · Accepted Answer

A price ceiling set below the equilibrium price typically leads to a shortage, not a surplus, as the quantity demanded exceeds the quantity supplied.

More Than 80 Percent of the Home Heating Oil Used