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.

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Definitions:

Dollar Sales

The total revenue generated from the sale of goods or services, measured in dollars.

Fixed-price Policy

A pricing strategy where a product or service is sold at a specific price that does not change in response to market fluctuations or customer negotiations.

No Haggle

A pricing strategy where the seller sets a fixed price for a product or service, eliminating the need for negotiation.

CarMax Dealership

A chain of used-car dealerships in the United States known for its no-haggle pricing and comprehensive vehicle inspection process.