P 6 WIN Price of Wheat 2 1 Quantity If the wheat market is in competitive equilibrium, the consumers' surplus will equal Oarea 1 + 2 + 3 area 1 + 2 + 4 area 3 + 5 area 1 + 2 + 3 + 4+ 5 area 6 Situation 4-1 During the winter of 1973-74, a general system of wage and price controls (including a price ceiling on gasoline) was in force in the United States. At the beginning of 1974, some oil-producing countries imposed an oil embargo (a legal prohibition on commerce) on the West. In the spring of 1974, price controls were abolished. If no price controls had been in place, the effect of the oil embargo on the equilibrium price and quantity of gasoline would have been an increase in both price and quantity. an increase in price and a decrease in quantity. O a decrease in price and an increase in quantity. O a decrease in both price and quantity