After Hurricane Katrina damaged many U.S. gasoline refineries in 2005, the price of gasoline shot up around the country. The Federal Trade Commission announced that it would investigate price gouging-charging "too much"-and - several members of Congress called for price controls on gasoline. Had they been imposed, what effect would price controls have had? Who would have benefited, and who would have been harmed by the controls? Use a supply-and-demand diagram to illustrate your answers. p. $ per gallon Price controls on gasoline would have P1 O A. resulted in a shortage because demand would have exceeded supply. OB. benefited all consumers because gas prices would have been lower. OC. benefited all consumers because there would have been no surpluses. D. resulted in a market equilibrium because gas would have been affordable. O E. resulted in a shortage because refiners would have shut down their plants in protest. Q. quantity of gasoline

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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After Hurricane Katrina damaged many U.S. gasoline refineries in 2005, the price
of gasoline shot up around the country. The Federal Trade Commission
announced that it would investigate price gouging-charging "too much"-and -
several members of Congress called for price controls on gasoline. Had they been
imposed, what effect would price controls have had? Who would have benefited,
and who would have been harmed by the controls? Use a supply-and-demand
diagram to illustrate your answers.
p. $ per gallon
Price controls on gasoline would have
P1
O A. resulted in a shortage because demand would have exceeded supply.
B. benefited all consumers because gas prices would have been lower.
OC. benefited all consumers because there would have been no surpluses.
O D. resulted in a market equilibrium because gas would have been affordable.
E. resulted in a shortage because refiners would have shut down their plants
in protest.
'פ
Q. quantity of gasoline
tv
MacBook Air
Transcribed Image Text:After Hurricane Katrina damaged many U.S. gasoline refineries in 2005, the price of gasoline shot up around the country. The Federal Trade Commission announced that it would investigate price gouging-charging "too much"-and - several members of Congress called for price controls on gasoline. Had they been imposed, what effect would price controls have had? Who would have benefited, and who would have been harmed by the controls? Use a supply-and-demand diagram to illustrate your answers. p. $ per gallon Price controls on gasoline would have P1 O A. resulted in a shortage because demand would have exceeded supply. B. benefited all consumers because gas prices would have been lower. OC. benefited all consumers because there would have been no surpluses. O D. resulted in a market equilibrium because gas would have been affordable. E. resulted in a shortage because refiners would have shut down their plants in protest. 'פ Q. quantity of gasoline tv MacBook Air
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