Table: Gasoline Market Use the Table

question 185

Multiple Choice

Table: Gasoline Market $$\begin{array} { l c c } \hline & \text { Free Market } & \text { Price Ceiling } \\\hline \text { Price per gallon of gas } & \$ 4.00 & \$ 3.00 \\\text { Value of time } & \$ 20 / \text { hour } & \$ 20 / \text { hour } \\\text { Waiting time to buy } & & \\20 \text { gallons of gas } & 0 & 1.5 \text { hours } \\\hline\end{array}$$ Use the table. The total cost of purchasing 20 gallons of gas at the free market price and the price ceiling are ________ and ________, respectively.

• A) $100; $80
• B) $80; $90
• C) $60; $75
• D) $40; $60

---

Definitions:

Total Costs

The total amount of expenses a business has for producing goods or services, encompassing both constant and fluctuating costs.

Elasticity of Demand

An indicator quantifying the impact of price movements on demand for a good.

Elasticity Coefficient

A measure of how much the quantity demanded or supplied of a good responds to a change in price, income, or another economic factor.

Resource Demand

The desire and ability of producers to acquire resources at various prices, which are necessary for production of goods and services.