To keep the price of gas from rising quickly after Katrina, the government instituted price ceilings on the price of gasoline in some states.These price ceilings caused ______ in the gasoline market.
A)surpluses
B)movement of the demand curve
C)movement along the demand curve
D)shortages

Question

Quizplus · Accepted Answer

Price ceilings set below the equilibrium price lead to shortages because the quantity demanded exceeds the quantity supplied at the capped price.

To Keep the Price of Gas from Rising Quickly After