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Question 23 Katherine is the president of the United States. In an attempt to make gasoline prices cheaper, she has imposed a binding price ceiling on gas. What would she expect her critics to say? The binding price ceiling will cause firms to produce only gasoline of the highest quality. O The binding price ceiling will encourage oil companies to deplete the resource too quickly. The binding price ceiling will cause firms to minimize their spending on the research and development of alternatives to gasoline. O The binding price ceiling will increase the likelihood that customers obtain needed gasoline on the black market. O The binding price ceiling will discourage individuals from using their personal automobiles to commute to work or school.

Question 23 Katherine is the president of the United States. In an attempt to make gasoline prices cheaper, she has imposed a binding price ceiling on gas. What would she expect her critics to say? The binding price ceiling will cause firms to produce only gasoline of the highest quality. O The binding price ceiling will encourage oil companies to deplete the resource too quickly. The binding price ceiling will cause firms to minimize their spending on the research and development of alternatives to gasoline. O The binding price ceiling will increase the likelihood that customers obtain needed gasoline on the black market. O The binding price ceiling will discourage individuals from using their personal automobiles to commute to work or school.

ENGR.ECONOMIC ANALYSIS
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 23 Katherine is the president of the United States. In an attempt to make gasoline prices cheaper, she has imposed a binding price ceiling on gas. What would she expect her critics to say? O The binding price ceiling will cause firms to produce only gasoline of the highest quality. O The binding price ceiling will encourage oil companies to deplete the resource too quickly. The binding price ceiling will cause firms to minimize their spending on the research and development of alternatives to gasoline. O The binding price ceiling will increase the likelihood that customers obtain needed gasoline on the black market. The binding price ceiling will discourage individuals from using their personal automobiles to commute to work or school.
Transcribed Image Text:Question 23 Katherine is the president of the United States. In an attempt to make gasoline prices cheaper, she has imposed a binding price ceiling on gas. What would she expect her critics to say? O The binding price ceiling will cause firms to produce only gasoline of the highest quality. O The binding price ceiling will encourage oil companies to deplete the resource too quickly. The binding price ceiling will cause firms to minimize their spending on the research and development of alternatives to gasoline. O The binding price ceiling will increase the likelihood that customers obtain needed gasoline on the black market. The binding price ceiling will discourage individuals from using their personal automobiles to commute to work or school.
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