Refer to Figure 6-4. With a price ceiling present in this market, what will happen when the supply curve for gasoline shifts from S1 to S2? A surplus will occur at the new market price of P2. The market price will stay at P1 due to the price ceiling. The price will increase to P3. A shortage will occur at the price ceiling of P2. Quantity demanded will remain at Q1 due to the price ceiling.

Refer to Figure 6-4. With a price ceiling present in this market, what will happen when the supply curve for gasoline shifts from S1 to S2? A surplus will occur at the new market price of P2. The market price will stay at P1 due to the price ceiling. The price will increase to P3. A shortage will occur at the price ceiling of P2. Quantity demanded will remain at Q1 due to the price ceiling.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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