Biology Forums - Study Force

Scenario: Suppose that the government imposes a price control on gasoline where the legal price is set at $1.50 per gallon while the equilibrium price would be $2.25. A shortage ensues. Worried that you may not have enough gas to commute to school and do errands, you get up before dawn to go to a gas station to fill up the tank. But you find yourself waiting in a long line. Fortunately, the station did not run out of gas before your turn came up, and you were happy to drive away with a full tank.


Refer to the scenario above. For the last gallon of gas that the seller is willing to produce at $1.50, the consumers are willing to pay ________.

▸ exactly $1.50

▸ more than $2.25

▸ more than $1.50 but less than $2.25

▸ less than $1.50

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