Effects of Price Ceilings a binding price ceiling creates shortages because Qp> Qs Example: Gasoline shortage of the 1970s nonprice rationing Examples: Long lines, Discrimination by sellersEffects of Price Ceilings • A binding price ceiling creates ... …shortages because QD > QS . – Example: Gasoline shortage of the 1970s … nonprice rationing – Examples: Long lines, Discrimination by sellers