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Consider the following graph in which demand and supply are initially D and S, respectively. What are the equilibrium price and quantity? If demand increases to D', what are the new equilibrium price and quantity? What happens if the government does not allow the price to change when demand increase?
According to the article, a run on gasoline is a phenomenon in which
A. Anxious consumers, fearing shortages in the future, demand more gasoline now than they usually would
B. The government institutes a price ceiling to prevent gouging
C. Oil producers are unable to produce as much gasoline as the market demands
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