Suppose That the Free-Market Equilibrium Price of Natural Gas Would

question 92

Multiple Choice

Suppose that the free-market equilibrium price of natural gas would be $2.00 per unit,but in an effort to protect consumers the government has fixed the price at $1.50.At this ceiling price the quantity ________ will be greater than the quantity ________,resulting in a ________ of natural gas.

• A)demanded; supplied; surplus
• B)supplied; demanded; surplus
• C)demanded; supplied; shortage
• D)supplied; demanded; shortage
• E)demanded; supplied; reduction in equilibrium price

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Definitions:

State Government

The organized system of leadership and authority within a specific state, responsible for making and enforcing laws, and managing public services and resources.

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The principle that all members of a society, including those in government, are equally subject to publicly disclosed legal codes and processes.

Rule Of Custom

A principle where social norms and behaviors are guided by longstanding traditions and customs rather than codified laws.