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Between the revisions the LPG prices at dedicated pump stations are fixed -regardless of the world LPG prices Price A Usually at this regulated price there will be excess demand (i.e quantity demanded > quantity supplied). Buyers will line up for the product. Thus, buyers wind up paying with waiting time Supply Dedicated stations are willing to supply this quantity only Price requlation (ceiling) Demand D Excess demand Quantity6 Between the revisions, the LPG prices at dedicated pump stations are fixed – regardless of the world LPG prices. Supply Demand Price Quantity A C D Usually at this regulated price, there will be excess demand (i.e., quantity demanded > quantity supplied). Buyers will line up for the product. Thus, buyers wind up paying with waiting time. Price regulation (ceiling) Excess demand Dedicated stations are willing to supply this quantity only
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