Many people are concerned about the rising price of gasoline. Suppose that government officials are thinking of capping the price of gasoline below its current price. Which of the following outcomes do you predict will result from this policy? Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the option once to place a check mark. For incorrect answer(s), click the option twice to empty the box. Drivers will purchase more gasoline. checked Quantity demanded for gasoline will increase. checked Long lines will develop at gas stations. checked Oil companies will work to increase their pumping capacity.

Respuesta :

Answer:

Checked

Quantity demanded for gaslone will increase

long lines will develop at gas stations

Explanation:

Answer:

Drivers will purchase more gasoline.

Quantity demanded for gasoline will increase.

Long lines will develop at gas stations.

Explanation:

A price ceiling set below the equilibrium price will always cause an increase in the quantity demanded and a decrease in the quantity supplied, resulting in both a shortage and a deadweight loss.

Since the price is set below the equilibrium quantity the suppliers will reduce the quantity supplied, so the oil companies will have no incentive to increase their oil production.

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