Economics 1st Edition by Dean Karlan,Jonathan Morduch

Exercise 19

Many people are concerned about the rising price of gasoline. Suppose that government officials are thinking of capping the price of gasoline below its current price. Which of the following outcomes do you predict will result from this policy? Check all that apply.
a. Drivers will purchase more gasoline.
b. Quantity demanded for gasoline will increase.
c. Long lines will develop at gas stations.
d. Oil companies will work to increase their pumping capacity.