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.