To keep the price of gas from rising quickly after a hurricane, the government sometimes institutes price ceilings on the price of gasoline. These price ceilings cause ________ in the gasoline market.
A) surpluses
B) movement of the demand curve
C) movement along the demand curve
D) shortages

Question

Quizplus · Accepted Answer

Price ceilings set a maximum price that can be charged, which often leads to shortages as the quantity demanded exceeds the quantity supplied at that price.

To Keep the Price of Gas from Rising Quickly After