Respuesta :
Answer:
Checked
Quantity demanded for gaslone will increase
long lines will develop at gas stations
Explanation:
Answer:
Drivers will purchase more gasoline.
Quantity demanded for gasoline will increase.
Long lines will develop at gas stations.
Explanation:
A price ceiling set below the equilibrium price will always cause an increase in the quantity demanded and a decrease in the quantity supplied, resulting in both a shortage and a deadweight loss.
Since the price is set below the equilibrium quantity the suppliers will reduce the quantity supplied, so the oil companies will have no incentive to increase their oil production.