Ultimately repealing the price controls on gasoline and oil:
A) led to permanently higher gasoline prices.
B) led to a higher supply of gasoline and lower prices.
C) was disastrous as the market collapsed due to a lack of government regulation.
D) was not able to eliminate the shortages of gasoline in the United States.

Question

Quizplus · Accepted Answer

Repealing price controls allowed market forces to determine the price of gasoline and oil, which led to an increase in supply and eventually lower prices. This was evident in the United States in the 1980s where prices fell and gasoline shortages disappeared.

Ultimately Repealing the Price Controls on Gasoline and Oil