1 if the equilibrium price of gasoline is s30ogallon and the government places a price ceiling o

Question

If the equilibrium price of gasoline is $3.00/gallon and the government places a price ceiling on gasoline at $4.00/gallon, the result will be a shortage of gasoline. True or False. A price ceiling set below the equilibrium price causes a surplus. True or False. A price set above the equilibrium price is a binding constraint. True or False. The shortage of housing caused by a binding rent control is likely to be more severe in the long run when compared to the short run. True or False.

          If the equilibrium price of gasoline is $3.00/gallon and the government places a price ceiling on gasoline at $4.00/gallon, the result will be a shortage of gasoline. True or False.

A price ceiling set below the equilibrium price causes a surplus. True or False.

A price set above the equilibrium price is a binding constraint. True or False.

The shortage of housing caused by a binding rent control is likely to be more severe in the long run when compared to the short run. True or False.

Added by Thomas Q.

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