Final answer:
The anticipated outcome in the gasoline market if the price is legally capped at $1.30 per gallon would be a shortage of gasoline.
Step-by-step explanation:
The anticipated outcome in the gasoline market if the price is legally capped at $1.30 per gallon would be a shortage of gasoline.
When the price of gasoline is capped at $1.30, it is below the equilibrium price of $1.40. This creates a situation where the quantity demanded by consumers exceeds the quantity supplied by producers, leading to a shortage.
In this scenario, consumers would be willing to buy more gasoline at the capped price, but producers would not be incentivized to supply more gasoline at a price below the equilibrium level, resulting in a shortage.
This economic phenomenon aligns with basic principles of supply and demand. If an equilibrium price for gasoline is set at a higher value, such as $1.40 per gallon, and the government imposes a cap at $1.30 per gallon, there will be an excess demand for fuel. Consumers will want to purchase more gasoline than what is being produced and supplied, leading to long lines at gas stations and potential rationing. This scenario might require the government or suppliers to implement additional measures to manage the distribution of the scarce resource.