Table: Gasoline Market $$\begin{array} { l c c }
\hline & \text { Free Market } & \text { Price Ceiling } \
\hline \text { Price per gallon of gas } & \$ 4.00 & \$ 3.00 \
\text { Value of time } & \$ 20 / \text { hour } & \$ 20 / \text { hour } \
\text { Waiting time to buy } & & \
20 \text { gallons of gas } & 0 & 1.5 \text { hours } \
\hline
\end{array}$$ Use the table. The total cost of purchasing 20 gallons of gas at the free market price and the price ceiling are ________ and ________, respectively.

Question

Table: Gasoline Market $$\begin{array} { l c c } 
\hline & \text { Free Market } & \text { Price Ceiling } \
\hline \text { Price per gallon of gas } & \$ 4.00 & \$ 3.00 \
\text { Value of time } & \$ 20 / \text { hour } & \$ 20 / \text { hour } \
\text { Waiting time to buy } & & \
20 \text { gallons of gas } & 0 & 1.5 \text { hours } \
\hline
\end{array}$$ Use the table. The total cost of purchasing 20 gallons of gas at the free market price and the price ceiling are ________ and ________, respectively.

Quizplus · Accepted Answer

In the free market, the cost is 20 gallons x $4 = $80. With the price ceiling, the cost is 20 gallons x $3 = $60 plus the value of 1.5 hours waiting time ($20/hour x 1.5 hours = $30), totaling $90.

Table: Gasoline Market Use the Table