HYPERLINK "https://en.wikipedia.org/wiki/Nicol%C3%A1s_Maduro%22%20%5Co%20%22" Nicolás Maduro is the controversial president of Venezuela. Venezuela is also a major producer of petroleum products, which remain a critical component of Venezuela's economy. Suppose President Maduro wanted to increase his popularity with the citizens of Venezuela by enacting a government policy to reduce the price of gasoline sold at state-owned gas stations to 60% of the previous price. Assuming a downward-sloping demand curve for gasoline, this policy should in theory result in a quantity of gasoline demanded that is _____ the quantity of gasoline supplied.
A)equal to
B)greater than
C)less than
D)greater than or equal to

Question

HYPERLINK "https://en.wikipedia.org/wiki/Nicol%C3%A1s_Maduro%22%20%5Co%20%22" Nicolás Maduro is the controversial president of Venezuela. Venezuela is also a major producer of petroleum products, which remain a critical component of Venezuela's economy. Suppose President Maduro wanted to increase his popularity with the citizens of Venezuela by enacting a government policy to reduce the price of gasoline sold at state-owned gas stations to 60% of the previous price. Assuming a downward-sloping demand curve for gasoline, this policy should in theory result in a quantity of gasoline demanded that is _____ the quantity of gasoline supplied.
A)equal to
B)greater than
C)less than
D)greater than or equal to
​

Quizplus · Accepted Answer

Reducing the price of gasoline to 60% of its previous price would make it cheaper, leading to an increase in the quantity demanded. According to the law of demand, if the price of a good decreases, the quantity demanded increases, assuming all other factors remain constant. Therefore, the quantity of gasoline demanded would be greater than the quantity supplied at this new lower price.

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