5. We cannot allow the price of gasoline to go any higher because it is as essential...

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5. "We cannot allow the price of gasoline to go any higher because it is as essential to the poor as to the rich. We cannot allow the rich to bid gasoline away from the poor. I would prefer to ration ten gallons of gas to each driver—both rich and poor." (Overheard during the gasoline shortage of the 1970s.)

(a) Do you agree with this opinion? Why?

(b) Do you think gasoline is more essential than food? Should the rich be allowed "to bid food away from the poor"? Should food be rationed, equal portions being granted to both rich and poor? Why or why not?

(c) Were your answers to both

(a) and

(b) consistent? Explain.

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Economics Private And Public Choice

ISBN: 9780123110404

2nd Edition

Authors: James D Gwartney; Richard Stroup; A H Studenmund

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