Figure 4-B
-Refer to Figure 4-B.The graph portrays the market for gasoline for which a ____ has been imposed, and, as a result, a ____ of gasoline occurs.
A)price floor; surplus
B)price ceiling; shortage
C)price ceiling; surplus
D)price floor; shortage

Question

Figure 4-B 
-Refer to Figure 4-B.The graph portrays the market for gasoline for which a ____ has been imposed, and, as a result, a ____ of gasoline occurs.
A)price floor; surplus 
B)price ceiling; shortage 
C)price ceiling; surplus 
D)price floor; shortage

Quizplus · Accepted Answer

The graph illustrates a price ceiling being imposed, shown by the horizontal line at $2.50 per gallon. At this price, the quantity demanded (QD) exceeds the quantity supplied (QS), resulting in a shortage of gasoline. Therefore, option B is the correct choice.

Figure 4-B -Refer to Figure 4-B.The Graph Portrays the Market for Gasoline