Effect of Price Controls When demand is inelastic If demand is sufficiently inelastic, triangle b ca Price D be larger than rectangle A and the consumer suffers a net loss from price controls. Example max Oil price controls and gasoline shortages n1979 Q Q Quantity Chapter Slide 10Chapter 9 Slide 10 B A Pmax C Q1 If demand is sufficiently inelastic, triangle B can be larger than rectangle A and the consumer suffers a net loss from price controls. Example Oil price controls and gasoline shortages in 1979 S D Effect of Price Controls When Demand Is Inelastic Quantity Price P0 Q2