Prve Cotting Refer to Figure 6-4. Without the price ceiling in this market for gasoline, what will happen to the price when the supply curve shifts from $1 to $27 It will increase to P3, but a shortage will still east It will increase to P3 and the market will clear It will remain at P1 and a shortage will still exist It will eventually move to P2 without government assistance.
Prve Cotting Refer to Figure 6-4. Without the price ceiling in this market for gasoline, what will happen to the price when the supply curve shifts from $1 to $27 It will increase to P3, but a shortage will still east It will increase to P3 and the market will clear It will remain at P1 and a shortage will still exist It will eventually move to P2 without government assistance.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Give typing answer with explanation and conclusion
Transcribed Image Text:Price
Pe Colling
Refer to Figure 6-4. Without the price ceiling in this market for gasoline, what will happen to the price when the
supply curve shifts from $1 to $27
It will increase to P3, but a shortage will still east
It will increase to P3 and the market will clear
It will remain at P1 and a shortage will still exist
It will eventually move to P2 without government assistance.
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