1. Uunng the OPEC cnsis of the 1970s, President Richard Nixon enacted price controls on oil and gasoline. Which of the following was a negitive unintended consequences of these binding price cetings?O A. There were massive shortages of oil and gasolineO B. Resources wore misallocated. Regions of the country that desperately needed gasoline (say, after a hurricane) were unatile to bid for it by offering higher pricesOC. Milions of Americans had to endure wasteful search cost by waiting in line for gas sinoe they were unatle to legally offer higher pricesOD. A black market developed for gasoline, where people had to pay bribes for gasoline that actualy made it more expensive than it wouldve been in the absonce of price controlsOE All of these are examples olnogative unintended consequences of Nixon's price controls

It resulted in an increase in unemployment. In order to slow down inflation, the Fed raised interest…

Uunng the UPEC ensis of the 1970s, President Richard Nixon enacted price controls on ol and gasoline. Which of the following was a negitive unintended consequences of these binding price cetings? O A. There were massive shortages of oil and gasoline OB. Resources were misalocated. Regions of the country that desperately needed gasoline (say, after a hurcane) were unable to bid for t by offering higher prices OC. Milions of Americans had to endure wasteful search cost by walting in ine for gas since they were unatile to legally offer higher prices OD. Ablack market developed for gasoline, where peoplie had to pay bribes for gasoline that actualy made it more expensive than it wouldve been in the absence of price controls OE All of these are examples olnegative unintended consequences of Nixon's price controts

Uunng the UPEC ensis of the 1970s, President Richard Nixon enacted price controls on ol and gasoline. Which of the following was a negitive unintended consequences of these binding price cetings? O A. There were massive shortages of oil and gasoline OB. Resources were misalocated. Regions of the country that desperately needed gasoline (say, after a hurcane) were unable to bid for t by offering higher prices OC. Milions of Americans had to endure wasteful search cost by walting in ine for gas since they were unatile to legally offer higher prices OD. Ablack market developed for gasoline, where peoplie had to pay bribes for gasoline that actualy made it more expensive than it wouldve been in the absence of price controls OE All of these are examples olnegative unintended consequences of Nixon's price controts

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter3: Demand And Supply

Section: Chapter Questions

Problem 56P: Table 3.10 shows the supply and demand for movie tickets in a city. Graph demand and supply and...

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During a discussion several year; ago on building a pipeline to Alaska to carry natural gas, the U.S. Senate passed a bill stipulating mat there should be a guaranteed minimum price for the natural gas that would flow through line pipeline. The thinking behind the bill was that if private firms had a guaranteed price for their natural gas, they would be more willing to drill for gas and to pay to build the pipeline. Using the demand and supply framework, predict the effects of this price floor on fine price, quantity demanded, and quantity supplied. With the enactment of this price floor for natural gas, what are some of the likely unintended consequences in line market? Suggest some policies other than the price floor that he government can pursue if it wishes to encourage drilling for natural gas and fur a new pipeline in Alaska.
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