Figure 6-12 -Refer to Figure 6-12.When the Price Ceiling Applies in This

question 125

Multiple Choice

Figure 6-12
-Refer to Figure 6-12.When the price ceiling applies in this market and the supply curve for gasoline shifts from S₁ to S₂,

• A)the market price will increase to P₃.
• B)a surplus will occur at the new market price of P₂.
• C)the market price will stay at P₁.
• D)a shortage will occur at the new market price of P₂.

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