the need for oil, an input into gasoline, increased one year because of a severe winter. Many homes in the northeast heat their homes with oil. a. b. C. d. 2. Why would supply and demand theory suggest that price controls (to deal with the situation described in the previous question) have negative consequences? They are politically unpopular. They cause shortages of gasoline. They shift the demand for gasoline to the right because of a change in tastes. Both b) and c) are correct.
the need for oil, an input into gasoline, increased one year because of a severe winter. Many homes in the northeast heat their homes with oil. a. b. C. d. 2. Why would supply and demand theory suggest that price controls (to deal with the situation described in the previous question) have negative consequences? They are politically unpopular. They cause shortages of gasoline. They shift the demand for gasoline to the right because of a change in tastes. Both b) and c) are correct.
Chapter2: Using Economics To Study Health Issues
Section: Chapter Questions
Problem 1QAP
Related questions
Question
Transcribed Image Text:the need for oil, an input into gasoline, increased one year because of a severe winter.
Many homes in the northeast heat their homes with oil.
2. Why would supply and demand theory suggest that price controls (to deal with the
situation described in the previous question) have negative consequences?
They are politically unpopular.
They cause shortages of gasoline.
They shift the demand for gasoline to the right because of a change in tastes.
Both b) and c) are correct.
а.
b.
С.
d.
Expert Solution
Step 1
An equilibrium price quantity and price is determined at a place where the market demand equals the market supply.
At equilibrium point
DD=SS
Step by step
Solved in 2 steps
Recommended textbooks for you
Principles of Microeconomics
Economics
ISBN:
9781305156050
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Principles of Microeconomics
Economics
ISBN:
9781305156050
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Survey of Economics (MindTap Course List)
Economics
ISBN:
9781305260948
Author:
Irvin B. Tucker
Publisher:
Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours…
Economics
ISBN:
9781337091985
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning