After President Reagan repealed the price controls on gasoline:
the supply of gasoline fell dramatically.
prices rose dramatically as a result of the repealed legislation.
the market experienced a period of vast surpluses as a result of the lack of regulation.
prices rose a little at first, but supply quickly began to increase and prices fell.
After President Reagan repealed the price controls on gasoline, the most accurate statement is:
prices rose a little at first, but supply quickly began to increase and prices fell.
When price controls were lifted, there was an initial increase in prices as the market adjusted to the new conditions. However, over time, the removal of price controls allowed for greater supply as producers were incentivized to increase production, leading to a stabilization and eventual decrease in prices.