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Suppose the government of the oil-rich country Saudi Arabia sets gasoline prices at $0.25 per gallon when the market price is $1.50. The Saudi government's

Suppose the government of the oil-rich country Saudi Arabia sets gasoline prices at $0.25 per gallon when the market price is $1.50. The Saudi government's actions will: a) improve efficiency, since the low prices will force producers to find cheaper production methods. b) result in gasoline surpluses in an oil-rich country c) cause gasoline shortages and dead-weight loss even in an oil-rich country d) improve equality between rich and poor, since the poor can now afford gasoline

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