Question: BUS 724 Assignment 2 Total Points = 10 Question 1 (1.5 points) Concerned about the political fallout from rising gas prices, suppose that the U.S.

BUS 724 Assignment 2 Total Points = 10 Question 1 (1.5 points) Concerned about the political fallout from rising gas prices, suppose that the U.S. government imposes a price ceiling of $3.00 a gallon on gasoline. a. (1 point) Explain how the market for gasoline would react to this price ceiling if a global shortage of oil sent the equilibrium price of gasoline to $3.50 a gallon. b. (0.5 point) Would the U.S. gasoline market be efficient? Question 2 (2 points) The figure below shows the car market in Mexico when Mexico places no restriction on the quantity of cars imported. The world price of a car is $10,000. If the

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