If the price ceiling were removed what would happen to the


1. How does the elasticity of supply and demand affect the price ceiling's affect on producer and consumer surpluses?


2. If the price ceiling were removed, what would happen to the price of gasoline in the near term? Is it fair that the available gasoline would only go to those people who are willing and able to pay the higher price? In being willing to pay more, does this mean that these people value gas more highly? What ideas of fairness presented in your text do you think apply in this case?


3. Why do you think there has been no suggestion of imposing a price ceiling on gasoline given current events in this market?

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Microeconomics: If the price ceiling were removed what would happen to the
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