Ultimately, Repealing the Price Controls on Gasoline and Oil

question 126

Multiple Choice

Ultimately, repealing the price controls on gasoline and oil:

• A) led to permanently higher gasoline prices.
• B) led to a higher supply of gasoline and lower prices.
• C) was disastrous since the market collapsed due to a lack of government regulation.
• D) was not able to eliminate the shortages of gasoline in the United States.

---

Definitions:

Demand Schedule

A table that shows the quantity of a good or service that consumers are willing to buy at various prices.

Coefficient of Price Elasticity

A measure of the responsiveness of the quantity demanded of a good to a change in its price.

Demand Schedule

A table or graph showing the quantity of a product or service demanded at various prices.

Imperfectly Competitive Firm

A business operating in a market where it has some control over the price of its product because competition is not completely intense.