During the Imposition of Price Controls in the 1970s, Long

question 105

Multiple Choice

During the imposition of price controls in the 1970s, long gasoline lines were common. In the absence of price controls, markets would have eliminated such excess demand by

• A) allowing the price to rise, so gas was rationed to those willing to pay the most for it.
• B) increasing the gap between supply and demand.
• C) allowing price to decline, so the poor could afford to buy more gas.
• D) mandating a 50-mile-per-hour speed limit to reduce consumption.

---

Definitions:

UCC

The Uniform Commercial Code consists of a wide-ranging group of laws that control every aspect of commercial transactions in the United States.

Cut-off Hour

A specific time by which transactions or actions must be completed to be processed on the same day, commonly used in banking.

Secondarily Liable

A legal obligation that falls onto a party only after the primary liable party fails to fulfill their liability.

Universal Defenses

Legal defenses that can be invoked regardless of the specifics of the contract or transaction in question, often relating to factors like fraud or duress.