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. What would have been the likely effect of such a law had it been passed? Price controls on gasoline would have OA. benefited all consumers because gas prices would have been lower. OB. benefited all producers because there would have been no shortages. OC. resulted in a shortage because demand would have exceeded supply. OD. resulted in a shortage because refiners would have shut down their plants in protest. OE. resulted in a market equilibrium because gas would have been affordable

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. What would have been the likely effect of such a law had it been passed? Price controls on gasoline would have OA. benefited all consumers because gas prices would have been lower. OB. benefited all producers because there would have been no shortages. OC. resulted in a shortage because demand would have exceeded supply. OD. resulted in a shortage because refiners would have shut down their plants in protest. OE. resulted in a market equilibrium because gas would have been affordable

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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. What would have been the
likely effect of such a law had it been passed?
Price controls on gasoline would have
OA. benefited all consumers because gas prices would have been lower.
OB. benefited all producers because there would have been no shortages.
OC. resulted in a shortage because demand would have exceeded supply.
OD. resulted in a shortage because refiners would have shut down their plants in protest.
OE. resulted in a market equilibrium because gas would have been affordable

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