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Gasoline currently sells for about $3 a gallon in the small town of Penfield. In an effort to help out the college students from a nearby university who road trip every year to see the old Greek Revival Chapel, the town is considering passing a law that will make it illegal to sell gasoline for more than 25 cents a gallon. What is the most likely result of such a price control

Respuesta :

A likely result of the price control is a shortage of gasoline.

What is a price control?

A price control is when the government or an agency of the government sets the price of a good or service. When the government sets the maximum price for a good, it is known as price ceiling.

A price ceiling can result in:

  • shortages
  • development of black market.
  • it increases consumer surplus.

To learn more about a price ceiling, please check: brainly.com/question/24312330

anthougo

The most likely result of the price control making it illegal to sell gasoline for more than 25 cents a gallon is artificial scarcity.

What is price control?

Price control is an economic mechanism instituted by the government to control the prices of goods and services.

Through price control, the government may regulate a price ceiling like 25 cents a gallon for gasoline.  The implication is that sellers of gasoline in the town cannot sell above 25 cents per gallon.

Thus, the resultant effect of the price control of a gallon of gasoline by the town is artificial scarcity.

Learn more about price control at https://brainly.com/question/5591393

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