The below figure shows the demand and supply curves in the market for gasoline.The price and quantity at the point of intersection of the demand and supply curves is $30 and 300 gallons respectively. Figure 3.6
-Assume that the market for gasoline in Figure 3.6 is in equilibrium.What is the most likely consequence of a government-imposed price ceiling at $10 per unit?
A) The profit made by gasoline producers will increase.
B) The demand for gasoline will decrease.
C) The quantity of gasoline supplied to the market will decrease.
D) There will be a surplus of gasoline in the market.
E) The demand curve for gasoline will shift to the right.
Correct Answer:
Verified
Q43: The figure given below shows the demand
Q59: The relationship between prices and the corresponding
Q61: The below figure shows the demand and
Q68: The table given below reports the quantity
Q69: The table given below reports the quantity
Q70: Inferior goods are low quality goods that
Q72: The below figure shows the demand and
Q74: The below figure shows the demand and
Q77: An example of barter is voluntary work
Q80: The demand for luxurious goods are usually
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents