Scenario 10-1 The Demand Curve for Gasoline Slopes Downward and the Supply

question 138

Multiple Choice

Scenario 10-1
The demand curve for gasoline slopes downward and the supply curve for gasoline slopes upward. The production of the 1,000^th gallon of gasoline entails the following:
• a private cost of $3.10;
• a social cost of $3.55;
• a value to consumers of $3.70.
-Refer to Scenario 10-1. Suppose the equilibrium quantity of gasoline is 1,150 gallons; that is, Q_MARKET = 1,150. Then the equilibrium price of a gallon could be

• A)$2.80.
• B)$3.00.
• C)$3.30.
• D)$3.80.

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Definitions:

Deviance

Behavior that violates the norms or cultural expectations of a society or community.

Peer Group Pressure

A phenomenon where individuals feel compelled to conform to the attitudes, behaviors, or values of their peers or social group.

Control Theories

In sociology and criminology, theories that explain social order as being maintained by social norms and institutions that encourage conformity and dissuade deviant behavior.

Social Controls

Mechanisms, both formal and informal, that regulate individual and group behavior, aiming to enforce conformity to societal norms.