If the Local Government Tells Gas Stations That They Are

question 29

Multiple Choice

If the local government tells gas stations that they are not allowed to change the price of gas for three weeks during hurricane season,what will be the consequence?

• A) Gas stations will be unable to sell all the gas they want at the temporary price ceiling price.
• B) Consumers will be unable to buy all the gas they want at the temporary price ceiling price.
• C) The supply curve for gas will increase and shift to the right.
• D) The demand curve for gas will increase and shift to the right.
• E) Equilibrium in the gas market will be achieved.

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