Which of the following is a result of government price controls?
A) Some people win and some people lose.
B) The deadweight loss from price ceilings is greater than the deadweight loss from price floors.
C) Price controls increase economic efficiency.
D) Price controls benefit poor consumers but harm producers and wealthy consumers.
A
You might also like to view...
Samia has decided that with the two hours in between classes she can do one of 3 things. She has ranked her choices, from highest to lowest as, (1 ) chat with her friends, (2 ) study economics or (3 ) take a nap
The opportunity cost of chatting with her friends is A) the combined value of studying economics and taking a nap. B) the value of studying economics, the next best use of time. C) the value of chatting with her friends. D) zero since she does not pay her friends to talk to her.
On a linear demand curve, demand is ________ at the middle of the demand curve than it is at small quantities.
A. more elastic B. less elastic C. equally elastic D. There is insufficient information in the question.