The Below Figure Shows the Demand and Supply Curves in the Market

question 65

Multiple Choice

The below figure shows the demand and supply curves in the market for gasoline. The price and quantity at the point of intersection of the demand and supply curves is $30 and 300 gallons respectively.Figure 3.6

-Assume that the market for gasoline in Figure 3.6 is in equilibrium. What is the most likely consequence of a government-imposed price ceiling at $10 per unit?

• A)The profit made by gasoline producers will increase.
• B)The demand for gasoline will decrease.
• C)The quantity of gasoline supplied to the market will decrease.
• D)There will be a surplus of gasoline in the market.
• E)The demand curve for gasoline will shift to the right.

---

Definitions:

Differential Carrier Housing

The casing that encloses the differential assembly in a vehicle, providing protection and support for the differential gears.

Lube Level

A measure indicating the amount of lubricant within a particular system or component, ensuring optimal operation and protection against wear and tear.

Oil Hole

A small, designed opening in machinery through which oil is applied for lubrication purposes.

Standard Transmission

A type of gearbox that requires manual operation by the driver to select and engage gears, using a clutch.