The rash of hurricanes that pelted the Gulf Coast in 2005 resulted in a large decline in gasoline production as many offshore rigs were shut down and many refineries were taken off line while waiting out the hurricane
The decrease in supplies of gasoline led to a run up in prices. Many voters clamored for relief by calling on their congressman and senators to enact temporary price controls. Analyze the impact on the gasoline market that would have transpired had politicians actually headed the calls by voters to impose price controls on gasoline.
If temporary controls had been put into effect the likely impact on the market would have been to create a shortage of gasoline. Put simply, this would have resulted in long lines at gas stations and other means of rationing gas as customers attempt to look for ways around the price control.
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If the United States imposes a tariff on foreign chocolate, how are U.S. producers of chocolate affected?
A) The quantity of chocolate they sell decreases because U.S. consumption of chocolate decreases. B) The quantity of chocolate they produce increases. C) The price at which they sell their chocolate falls. D) They are harmed because foreign exporters of chocolate increase their supply in response to the higher price. E) They are unaffected because the quota applies to foreign producers, not to U.S. producers.
In terms of the numbers of firms in the U.S. economy, the most common type of firm is the
a. corporation b. partnership c. sole proprietorship d. nonprofit organization e. limited partnership corporation