The graph above shows the market for gasoline after the government imposes a pri
ID: 1140529 • Letter: T
Question
The graph above shows the market for gasoline after the government imposes a price ceiling of $3.50 a gallon. With the price ceiling in place, the amount of gas that people would want in this market would be _____ gallons, but the gas station owners are willing to supply only ________ gallons.
Price $4.50 $4.00 3.50 Quantity (gallons per week) 300 500 550 The graph above shows the market for gasoline after the government imposes a price ceiling of $3.50 a gallon. With the price ceiling in place, the amount of gas that people would want in this market would be willing to supply only gallons, but the gas station owners are gallons. Part 2 (2 points) See Hint Which of the following are likely to occur in this market? Choose one or more: nA. long lines for gasoline B. a black market for gasoline C. a surplus of gasoline available D, gas stations offering better-quality gasolineExplanation / Answer
The graph above shows the market for gasoline after the government imposes a price ceiling of $3.50 a gallon. With the price ceiling in place, the amount of gas that people would want in this market would be 550 gallons, but the gas station owners are willing to supply only 300 gallons.
Explanation : - With the price ceiling in place,we observe from the graph that the quantity demanded at $ 3.50 is 550 gallons per week, but the quantity supplied is 300 gallons per week.
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Part 2
The correct answer is B. A black market for gasoline
Explanation : - When governments try to control prices by setting price ceilings, buyers and sellers often find a way around the controls. The result is a black market where buying and selling take place at prices that violate government price regulations.
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