Exhibit -Refer to Exhibit

Exhibit
$\begin{array}{ccc} \text{Price per gallon} & \begin{array}{c} \text{Quantity Demanded }\\\text{(thousands of gallons) }\end{array} & \begin{array}{c} \text{Quantity Supplied} \\\text{of ga soline }\\\text{(thousands of gallons) }\end{array} \\\hline\$ 4.50 & 600 & 2,000 \\\$ 4.25 & 700 & 1,900 \\\$ 4.00 & 800 & 1,800 \\\$ 3.75 & 950 & 1,700 \\\$ 3.50 & 1,200 & 1,600 \\\$ 3.25 & 1,500 & 1,500 \\ \$ 3.00 & 1,800 & 1,400 \\\$ 2.75 & 2,100 & 1,300 \\\$ 2.50& 2,400 & 1,200\end{array}$
-Refer to Exhibit. If the government imposes a $2.50 price ceiling:

A) a 1,200,000 gallon surplus will result
B) a 2,400,00 gallon surplus will result.
C) a 1,200,000 gallon shortage will result.
D) a 2,400,000 gallon shortage will result.

Correct Answer:

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