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

question 30

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.

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Definitions:

Social Justice

The pursuit of fairness and equality within a society, particularly in terms of the distribution of wealth, opportunities, and privileges.

Papal Rule

The jurisdiction and governance exercised by the Pope, especially historically over the Papal States and within the Roman Catholic Church.

European Counterparts

Indicates the European equivalents or peers in rank, function, or role to a specific reference outside of Europe, often used in comparative analyses.

Spread of Electricity

The expansion or dissemination of electric power and its application throughout societies, significantly impacting industrialization, communication, and daily life.