Question

If the price ceiling is below​ $70, quantity supplied and quantity demanded differ. Quantity supplied Quantity demanded Quantity supplied will determine how much oil is purchased.

Answer 1

When a price ceiling is set below $70 (the equilibrium price), the quantity demanded will usually increase over quantity supplied.

Step-by-step explanation:

Note that a price ceiling restraints the price of commodity from rising above a certain level. This is usually done by Governmental to control prices.

In the case of oil prices assuming the equilibrium price (the price where demand and supply is equal) is $70 and the price ceiling is made below it by a new law, we should expect the quantity demanded to exceed the supply; following the laws of demand and supply.