According to your textbook, the notion of price "gouging" is problematic because
A) the higher prices are normally the result of decreases in supply and increases in demand.
B) economists believe higher prices are always better than lower prices.
C) economists want businesses to make high profits.
D) None of the above.
A
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In a housing market with a rent ceiling set below the equilibrium rent, as time passes the supply of apartments
A) decreases. B) increases. C) does not change. D) becomes fixed by the government. E) increases while the demand for apartments decreases.
The basic reason that supply curves slope upward is that
a. demand curves slope downward b. production is characterized by increasing costs c. profits decline as product prices rise d. greater output can only result from improved technology e. price and quantity supplied are inversely related