when the price ceiling applies in this market and the supply curve for gasoline shifts from s1 to s2, A shortage will occur at the new market price of P2
A price ceiling is a limit placed by the government or another party on the most that can be paid for a thing, commodity, or service. Price caps are reportedly implemented by governments to protect consumers from scenarios where commodities can become costly.
In addition to those who are unable to purchase the product at all, those who are able to do so at the lower price established by the price ceiling will also suffer.
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