Question: The demand and supply curves for gasoline are the same

The demand and supply curves for gasoline are the same in Upper Slobbovia as in Lower Slobbovia. However, in Upper Slobbovia everybody's time is worth just $1 per hour, while in Lower Slobbovia everybody's time is worth $10 per hour.
True or False: If both countries impose a price ceiling on gasoline, the value of time wasted in waiting lines will be higher in Lower Slobbovia than in Upper Slobbovia.


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  • CreatedFebruary 21, 2014
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