Question

Suppose the government imposes a price ceiling on gasoline that is less than the equilibrium price. As a​ result, A. there is incentive for buyers to undertake search activity. B. the price of gasoline rises to the equilibrium price. C. the supply of gasoline will increase and the supply curve will shift rightward. D. the demand for gasoline will decrease and the demand curve will shift leftward.

Answer 1

Answer: (B) There is incentive for buyers to undertake search activity

Explanation:

Setting price below equilibrium will create shortage.