In the 1970s, several Middle Eastern countries imposed an oil embargo on countries that, in their view, supported Israel when being attacked. The embargo led to a dramatic increase in gas prices. In response, President Nixon put a binding price ceiling on gas prices. Graph the situation and explain what you believe the impact of the price ceiling was in the United States after being imposed.

Next, watch the following video describing what it was like in the 1970s with price ceilings. How do predictions match with the reality of the situation?