Refer to Figure 6-8. In 1973, OPEC restricted supply and U.S. government regulations limited the price oil companies could charge for gasoline. Which of the following statements best relates the figure to the events that occurred in the United States in the 1970s? Buyers of gasoline paid a price of P, before 1973; they paid a price of P2 after OPEC increased the price of crude oil in 1973, and there was a shortage of gasoline at that price. Buyers of gasoline paid a price of P, before 1973; they paid a price of P, after OPEC increased the price of crude oil in 1973, and there was a shortage of gasoline at that price. Buyers of gasoline paid a price of P, before 1973; they paid a price of P3 after OPEC increased the price of crude oil in 1973, with no shortage of gasoline at that price. The price ceiling was binding before 1973; the price ceiling was no longer binding after OPEC increased the price of crude oil in 1973.
