Asked by
Alexia Perez
on Dec 11, 2024
Verified
The presence of price controls in a market usually is an indication that
A) an insufficient quantity of a good or service was being produced in that market to meet the public's need.
B) the usual forces of supply and demand were not able to establish an equilibrium price in that market.
C) policymakers believed that the price that prevailed in that market in the absence of price controls was unfair to buyers or sellers.
D) policymakers correctly believed that, in that market, price controls would generate no inequities of their own.
Price Controls
Government-imposed limits on the prices that can be charged for goods and services in the market to control inflation or ensure affordability.
Equilibrium Price
The price at which the quantity of goods supplied is equal to the quantity of goods demanded.
Policymakers
Individuals or groups responsible for creating and implementing laws, regulations, or guidelines within an organization or government.
- Understand the importance of government involvement in markets by applying price controls and their impact on the balance of supply and demand.
Verified Answer
HR
Learning Objectives
- Understand the importance of government involvement in markets by applying price controls and their impact on the balance of supply and demand.