Which of the following is false?
A) When the U.S.government imposed price ceilings on gasoline,the result was a surplus of gasoline.
B) When the U.S.government imposed price ceilings on gasoline,the result was a shortage of gasoline.
C) If a price ceiling is imposed below the equilibrium price in a given market,the result is a shortage in that market.
D) First-come-first-served is a commonly used rationing device.

Question

Quizplus · Accepted Answer

A price ceiling set below the equilibrium price does not create a surplus; instead, it creates a shortage because the price is too low to clear the market, leading to higher demand than supply.

Which of the Following Is False