1. 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 e a shortage of gasoline. True or False 2. A price ceiling set below the equilibrium price causes a surplus. True or False 3. A price set above the equilibrium price is a binding constraint. True or False 4. 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

1. 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 e a shortage of gasoline. True or False 2. A price ceiling set below the equilibrium price causes a surplus. True or False 3. A price set above the equilibrium price is a binding constraint. True or False 4. 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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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