Recent Posts • Latest Topics • Unanswered Questions

Scenario: Suppose that the government imposes a price control on gasoline where the legal price is ...

dietdrpepper

wrote...

Go to Answer

Posts: 143

Rep:

A year ago

Scenario: Suppose that the government imposes a price control on gasoline where the legal price is ...

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. Your total cost of getting gas ________.

▸ may be higher than the equilibrium price because of your opportunity cost of waiting in line and uncertainty about availability of gasoline

▸ is exactly the same as the equilibrium price because you managed to get gas

▸ may be higher than the equilibrium price because the seller usually charges an illegally higher price

▸ is lower than the equilibrium price thanks to the price ceiling

Textbook

Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

Read 72 times

1 Reply

Report

Replies

Answer verified by a subject expert

mattloftergener

wrote...

Posts: 129

Rep:

A year ago

More solutions for this book are available here

Report

Related Topics

dietdrpepper Author

wrote...

A year ago

Just got PERFECT on my quiz

gage

wrote...

Yesterday

Helped a lot

annakc

wrote...

2 hours ago

This calls for a celebration Person Raising Both Hands in Celebration

New Topic

Quick Reply

Explore

Post your homework questions and get free online help from our incredible volunteers

1389 People Browsing

130 Signed Up Today

Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook

Related Images

1012

246

320

Your Opinion

Previous poll results: Which 'study break' activity do you find most distracting?

Bonobos, Chimpanzees, and the 98% DNA Link

Courses by Biology Forums

It's sore throat season, why does my mucus have red spots?

The Toxic Skin and Fungi Defense

Strange Ingredients Lurking in Doritos Chips

Ready to ask a question on Biology Forums? Try it out

Join Our Community

Biology Forums - Study Force is a free online homework help service catered towards college and high school students. Get homework help and answers to your toughest questions in biology, chemistry, physics, mathematics, engineering, accounting, business, humanities, and more. Master your assignments quickly with thousands of step-by-step solutions to countless textbook questions asked and answered by our members. If we don't have your question, don't worry. You can ask any homework question and get expert homework help in as little as two hours.

Our extensive online study community is made up of college and high school students, teachers, professors, parents and subject enthusiasts who contribute to our vast collection of study resources: textbook solutions, study guides, practice tests, practice problems, lecture notes, equation sheets and more. With our help, your homework will never be the same!

Join for free today

How is Biology Forums - Study Force different than tutoring?

Home Search Q & A Board Gallery Resource Library Blog Dictionary Chat	Quick Links Start a Topic Latest Topics Unanswered Questions Courses Study Tools Browse by Textbook	Social Facebook YouTube Community Stats Who's Online Trending Staff	Help About Us Take the Tour Study Tips Posting Guidelines Terms and Policies Contact Us
Biology Forums - Study Force © 2010-2024 \| Powered by SMF \| SMF © 2015, Simple Machines \| Sitemap Biology-Forums.com is not affiliated with any publisher. Book covers, title and author names appear for reference only.