Author Question: In 1970s the federal government imposed price controls on natural gas. Which of the following ... (Read 80 times)

cagreen833 · **on:** Jul 1, 2018

In 1970s the federal government imposed price controls on natural gas. Which of the following statements is true?

A) These price controls caused a chronic excess supply of natural gas.
B) Consumers gained from the price controls, because consumer surplus was larger than it would have been under free market equilibrium.
C) Producers gained from the price controls because producer surplus was larger than it would have been under free market equilibrium.
D) This episode of price controls was unusual, because it resulted in no deadweight loss to society.

Question 2

Sugar can be refined from sugar beets. When the price of those beets falls,

A) the demand curve for sugar would shift right.
B) the demand curve for sugar would shift left.
C) the supply curve for sugar would shift right.
D) the supply curve for sugar would shift left.