Exhibit 5-6 Refer to Exhibit 5-6.If the government imposes a $2.50 price ceiling:

Question

Exhibit 5-6  Refer to Exhibit 5-6.If the government imposes a $2.50 price ceiling:

Quizplus · Accepted Answer

At a price ceiling of $2.50, the quantity demanded of gasoline is 3 million gallons, while the quantity supplied is only 1.8 million gallons, resulting in a shortage of 1.2 million gallons. Therefore, choice C is correct. A and B are incorrect because they suggest surpluses, which do not occur at price ceilings. D is incorrect because it suggests a larger shortage than what would occur based on the graph.