Concerned about the political fallout from rising gas prices, suppose that the U.S. government imposes a price ceiling of $3.00 a gallon on gasoline.

Explain how the market for gasoline would react to this price ceiling if a global shortage of oil sent the equilibrium price of gasoline to $3.50 a gallon.

Would the U.S. gasoline market be efficient?

Use the following information to work Problems 5 and 6.

New York seals deal on $15 minimum fast-food wage Raising the minimum wage to $15 an hour will add fairness and bring dignity to between 135,000 and 200,000 workers whose hourly wage will rise to $15 by the end of 2018 in New York City and by 2021 in the rest of the state.

Source: CNNMoney, September 11, 2015