After President Reagan Repealed the Price Controls on Gasoline

question 132

Multiple Choice

After President Reagan repealed the price controls on gasoline:

• A) the supply of gasoline fell dramatically.
• B) the market experienced a period of vast surpluses as a result of the lack of regulation.
• C) prices rose a little at first, but supply quickly began to increase and prices fell.
• D) prices rose dramatically as a result of the repealed legislation.

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Definitions:

Raw Materials Purchases

The total cost incurred from buying raw materials that are to be used in the production process.

Standard Costs

The predetermined costs of manufacturing a single unit or a number of product units during a specific period under current or anticipated operating conditions.

Gallons

A volume measurement primarily utilized in the United States for quantifying liquid substances.

Raw Materials Inventory

Refers to the total cost of all the materials that are not yet processed and used in production, stored in a warehouse or inventory.