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

question 465

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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