To keep the price of gas from rising quickly after a hurricane, the government sometimes institutes price ceilings on the price of gasoline. These price ceilings cause __ in the gasoline market. Select one: a. movement of the demand curve b. surpluses c. movement along the demand curve d. shortages

## Step 1<br />A price ceiling is a government-imposed limit on the price of a good or service. This is done to protect consumers from conditions that could cause prices to become prohibitively expensive. In this case, the government is imposing a price ceiling on gasoline to prevent the price from rising quickly after a hurricane.<br /><br />## Step 2<br />When a price ceiling is set below the equilibrium price, it causes the price to remain at the ceiling level. This is because the price is not allowed to rise above the ceiling, regardless of the market conditions.<br /><br />## Step 3<br />At this lower price, the quantity demanded increases, but the quantity supplied decreases. This is because suppliers are not willing to supply as much at the lower price.<br /><br />## Step 4<br />The result of this is a shortage in the market, as the quantity demanded exceeds the quantity supplied. This is because the lower price encourages more consumers to buy gasoline, but the suppliers are not willing to supply as much at this lower price.