1. You are running for President of the United States. One of your promises to the American people is cheaper gas if you are elected. You win. To keep your promise to make gas cheaper you impose a price ceiling that is one full dollar less than the market's equilibrium price.What would be the reaction of the sellers of gasoline and of the public to the price ceiling law? Thoroughly explain this situation and define any terms.
2. Based on question 1, Draw a graph showing the price ceiling. Label the consumer surplus and the producer surplus
3. Based on question 1, Would you expect to be reelected in the long run? Explain