Since the price of gasoline has risen dramatically over the past few years, there have been some proposals for the government to regulate the price of gasoline.
In the Regulation comment on the benefits and costs of regulating gasoline prices
a. Consider what might be the unintended consequences of regulation? Who would benefit, who would suffer from regulation? How would the effects affect all levels of wage earners?
b. Discuss both the short term and long term impacts of regulation. On balance, do you think this would be a good economic decision? Explain your reasons.