If the government imposed a price ceiling on gasoline above this good's current market clearing price, there would be
A) a shortage of gasoline. at the ceiling price.
B) a surplus of gasoline at the ceiling price.
C) an increase in the price of gasoline.
D) no change in the price of gasoline.

Question

Quizplus · Accepted Answer

A price ceiling set above the current market clearing price would not affect the market because the market price is already below the ceiling. Therefore, there would be no change in the price of gasoline.

If the Government Imposed a Price Ceiling on Gasoline Above