If the Equilibrium Price of Natural Gas Is $4 Per

question 169

Multiple Choice

If the equilibrium price of natural gas is $4 per thousand cubic feet and a price ceiling is imposed at $3 per thousand cubic feet, the result will be:

• A) a surplus of natural gas.
• B) a shortage of natural gas.
• C) an accumulation of inventories of unsold gas.
• D) None of these.

---

Definitions:

Lease Payments

Regular payments made by a lessee to a lessor for the use of an asset over a specified period.

Net Advantage

The overall financial benefit that is realized from engaging in a particular investment, decision, or action.

Distillation Unit

A piece of equipment used in the process of separating components or substances from a liquid mixture through selective boiling and condensation.

CCA Rate

The abbreviation for Capital Cost Allowance rate, which is the rate at which a business can claim depreciation on certain assets for tax purposes.