Every Spring, Motorists Do More Driving Than During the Winter

question 183

Multiple Choice

Every spring, motorists do more driving than during the winter months. Every spring, the price of gasoline increases and the motorists buy more gasoline. This experience suggests that the

• A) ʺlaw of demandʺ does not always hold for necessities like gasoline.
• B) laws of supply and demand are both contradicted for gasoline, though only during the spring driving season.
• C) ʺlaw of supplyʺ does not always hold for necessities like gasoline.
• D) None of the above answers are correct.

Recognize the inefficiencies caused by binding price ceilings and their rationing mechanisms.

Comprehend the historical context and the impact of price ceilings, using the 1973 gasoline shortage as an example.

Identify the consequences of imposing binding price ceilings in competitive markets.

Analyze the role of rent control as a form of price ceiling and its intended goals.

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Definitions:

Harassment

Unwanted or unwelcome behavior that causes discomfort or harm, which can be sexual, verbal, physical, or psychological in nature.

Discrimination

The unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, sex, or disability.

Perceptual Distortions

Perceptual Distortions are errors in judgment or misinterpretations of sensory information, which can affect understandings and decisions by distorting reality.

Stereotypes

An individual’s fixed beliefs about the characteristics of a particular group.