If the equilibrium price of natural gas is $4 per thousand cubic feet and a price ceiling is imposed at $3 per thousand cubic feet, the result will be:
A) a surplus of natural gas.
B) a shortage of natural gas.
C) an accumulation of inventories of unsold gas.
D) None of the above.

Question

Quizplus · Accepted Answer

A price ceiling below the equilibrium price will create a shortage of natural gas because the quantity demanded at the lower price will exceed the quantity supplied by producers, leading to excess demand or a shortage in the market.

If the Equilibrium Price of Natural Gas Is $4 Per