Suppose Congress passes a law that states the price of gasoline may not exceed $6 per gallon (but may be lower)
If the current price of gasoline is less than $6, what impact does this law have on the current price and quantity of gasoline in the US market? A) There is a shortage of gasoline
B) There is a surplus of gasoline
C) Quantity supplied currently equals quantity demanded, but a surplus is possible at prices above $6
D) The law currently has no impact, and the market clears at the equilibrium price
D
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Suppose the United States reduced the tariff on digital camera, allowing foreign-produced cameras to more freely enter the U.S. market. Which of the following would most likely occur?
a. The price of cameras to U.S. consumers would increase, and the demand for U.S. export products would rise. b. The price of cameras to U.S. consumers would fall, and the demand for U.S. export products would fall. c. The price of cameras to U.S. consumers would increase, and the demand for U.S. export products would fall. d. The price of cameras to U.S. consumers would fall, and the demand for U.S. export products would rise.
In the long run, an increase in the growth rate of the money supply leads to an increase in the real interest rate, but no change in the nominal interest rate
a. True b. False Indicate whether the statement is true or false