Figure 6-6

-Refer to Figure 6-6.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

Question

Figure 6-6
 
-Refer to Figure 6-6.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

Quizplus · Accepted Answer

When the supply curve shifts from S₁ to S₂ due to the price ceiling, the new equilibrium point is at the intersection of S₂ and D which is at point E. At this point, the quantity demanded is Q₂ but the quantity supplied is only Q₁. Therefore, the resulting quantity of gasoline bought and sold is less than Q₃.

Figure 6-6 -Refer to Figure 6-6.When the Price Ceiling Applies in This