1. If the government mandated a price for gasoline there will be a shortage like there was during the 1970’s when Middle Eastern countries cut off all ports to many Western Nations. The effects were not good. Gas stations shut down, oil was ruled as unrenewable because they had to resort to cheap imported oil and people feared that the OPEC would take over the government.
2. If the government set one low price on gas then people would buy more of it and shortage and long lines would result. Producers would give out less amounts of gasoline and set only a certain amount of gallons could be gives to consumers. More gas would be a demand than it is supplied.
3. If the government would set one high price then people would start buying less and gas stations would shut down. The demand for energy saving cars would increase, like it has now, and since the producers who have to buy the oil in the first place have to pay more for it, will raise their prices to compensate their losses.
Since the prices of gasoline is not set to one price, the price will go up and down and there will be no shortage or long lines as a result because there is no mandated price.
