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if the government imposed a price ceiling on oil and gas prices? How would this affect the market in terms of demand and supply? Would this be feasible?

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

ChapterST10: The Question Of Resource Exhaustion

Section: Chapter Questions

Problem 1CQ

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Question

if the government imposed a price ceiling on oil and gas prices? How would this affect the market in terms of demand and supply? Would this be feasible?

Video Definition Video Definition Government regulation setting a maximum price a business may charge for a given good or service. A price ceiling itself does not cause demand or supply to change. It is simply a mechanism used to set a price that can be legally charged in the market. Price ceilings are often implemented during times of crisis to avoid price gouging.

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