Price Ceilings

a. Would a shortage or surplus result, and how large will it be? b. Who will benefit from this government policy? Producers or consumers? c. Indicate (using consumer or producer surplus) how much the group chosen above will gain. d. If the price ceiling were increased to $4 per gallon, what will the market price and quantity be?vill happen to Geoge's budget line if the price of Good A Price Ceilings 21. Suppose the U.S. government places a price ceiling on the price of gasoline at $2 per gallon, as shown in the diagram below Price ($) Price Colling 0 10 20 30 Quantity (in millions of gallons) ping World, 2023