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p. S per gallon 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. Price controls on gasoline would have A. resulted in a shortage because demand would have exceeded supply O B. benefited all consumers because gas prices would have been lower. P1 O C. benefited all consumers because there would have been no surpluses. O 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. Consider the market for gasoline illustrated in the figure to the right. Suppose the supply of gasoline was initially S' where the market equilibrium is initially at e, at an equilibrium price of p, and an equilibrium quantity of Q,. After Q. quantity of gasoline Hurricane Katrina, assume the gasoline supply curve shifts to s. the market for gasoline after 1.) Using the point drawing tool, indicate the new equilibrium price and quantity Hurricane Katrina. Label this point 'e2 2.) Using the point drawing tool, indicate the market price and quantity of gasoline if price controls are used to keep the price at (or no higher than) the original equilibrium price of p,. Label this point 'ez. Carefully follow the instructions above, and only draw the required objects.

p. S per gallon 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. Price controls on gasoline would have A. resulted in a shortage because demand would have exceeded supply O B. benefited all consumers because gas prices would have been lower. P1 O C. benefited all consumers because there would have been no surpluses. O 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. Consider the market for gasoline illustrated in the figure to the right. Suppose the supply of gasoline was initially S' where the market equilibrium is initially at e, at an equilibrium price of p, and an equilibrium quantity of Q,. After Q. quantity of gasoline Hurricane Katrina, assume the gasoline supply curve shifts to s. the market for gasoline after 1.) Using the point drawing tool, indicate the new equilibrium price and quantity Hurricane Katrina. Label this point 'e2 2.) Using the point drawing tool, indicate the market price and quantity of gasoline if price controls are used to keep the price at (or no higher than) the original equilibrium price of p,. Label this point 'ez. Carefully follow the instructions above, and only draw the required objects.

Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter3: Demand And Supply
Section: Chapter Questions
Problem 53P: Table 3.8 shows information on the demand and supply for bicycles, where the quantities of bicycles...
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四※ 品6 会 00 * P. S per gallon 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. s2 Price controls on gasoline would have A. resulted in a shortage because demand would have exceeded supply. O B. benefited all consumers because gas prices would have been lower. P1 .........e, O C. benefited all consumers because there would have been no surpluses. O 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. Consider the market for gasoline illustrated in the figure to the right. Suppose the supply of gasoline was initially s'. where the market equilibrium is initially at e, at an equilibrium price of p, and an equilibrium quantity of Q,. After D1 Q, quantity of gasoline Hurricane Katrina, assume the gasoline supply curve shifts to S. 1.) Using the point drawing tool, indicate the new equilibrium price and quantity in the market for gasoline after Hurricane Katrina. Label this point 'e,." 2.) Using the point drawing tool, indicate the market price and quantity of gasoline if price controls are used to keep the price at (or no higher than) the original equilibrium price of p,. Label this point 'eg. Carefully follow the instructions above, and only draw the required objects. étv MacBook Air DII DD esc F1 F2 F3 F7 F8 F9 F10 F11 ! @ $ % & 2 3 4 6 8 Q W E R T Y U
Transcribed Image Text:四※ 品6 会 00 * P. S per gallon 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. s2 Price controls on gasoline would have A. resulted in a shortage because demand would have exceeded supply. O B. benefited all consumers because gas prices would have been lower. P1 .........e, O C. benefited all consumers because there would have been no surpluses. O 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. Consider the market for gasoline illustrated in the figure to the right. Suppose the supply of gasoline was initially s'. where the market equilibrium is initially at e, at an equilibrium price of p, and an equilibrium quantity of Q,. After D1 Q, quantity of gasoline Hurricane Katrina, assume the gasoline supply curve shifts to S. 1.) Using the point drawing tool, indicate the new equilibrium price and quantity in the market for gasoline after Hurricane Katrina. Label this point 'e,." 2.) Using the point drawing tool, indicate the market price and quantity of gasoline if price controls are used to keep the price at (or no higher than) the original equilibrium price of p,. Label this point 'eg. Carefully follow the instructions above, and only draw the required objects. étv MacBook Air DII DD esc F1 F2 F3 F7 F8 F9 F10 F11 ! @ $ % & 2 3 4 6 8 Q W E R T Y U
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