If a price ceiling on gasoline results in long lines at the gas station and a rich businessman and an elderly retiree both need gasoline, who would have the higher-valued use for gasoline, and who would have the lower opportunity cost of waiting in line?
A) The businessman would have the higher-valued use and the lower opportunity cost.
B) The businessman would have the higher-valued use and the retiree would have the lower opportunity cost.
C) The retiree would have the higher-valued use and the lower opportunity cost.
D) The retiree would have the higher-valued use and the businessman would have the lower opportunity cost.

Question

Quizplus · Accepted Answer

The businessman likely has a higher-valued use for gasoline due to business needs, while the retiree, having more free time, has a lower opportunity cost of waiting in line.

If a Price Ceiling on Gasoline Results in Long Lines