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Refer to the above figure. At a price of $2 per gallon, there is

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Refer to the above figure. At a price of $2 per gallon, there is

Question 1.

Refer to the above figure. If government sets the maximum legal price of gasoline at $2 per gallon, then the $2 limit acts as

• a price ceiling.

• a just price.

• a price floor.

• an equilibrium price.

Question 2.

Refer to the above figure. At a price of $2 per gallon, there is

• a shortage of 60,000 gallons per month.

• a shortage of 40,000 gallons per month.

• a shortage of 80,000 gallons per month.

• a surplus of 20,000 gallons per month.

Textbook

Economics Today: The Micro View

Edition: 19^th

Author: Miller

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sadeen

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