When prices are allowed to fluctuate after a crisis, such as Hurricane Katrina, the high prices
A) provide information to suppliers about where goods and services are most highly desired.
B) are evidence of price gouging.
C) justify government intervention.
D) All of the above.
A
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When will a shortage occur in a market?
a. When the actual price is lower than the equilibrium price b. When quantity supplied is greater than the equilibrium quantity c. When the quantity that consumers are willing and able to purchase decreases d. When the quantity available at zero price is insufficient to meet demand e. When a price floor is set in the market
Senator A agrees to vote for Senator K's state project in exchange for Senator K voting for Senator A's state project. This is an example of:
A. logrolling. B. the paradox of voting. C. the principal-agent problem. D. the median voter model.