Asked by
Vetri Selvan
on Dec 11, 2024
Verified
If a government price control succeeds in affecting price, it can be expected to lead to a corresponding
A) decrease in the quantity of sales only if the price is forced down.
B) decrease in the quantity of sales if the price is forced down and an increase in the volume of sales if the price is forced up.
C) decrease in the quantity of sales whether the price is forced up or down.
D) increase in the quantity of sales whether the price is forced up or down.
Government Price Control
Regulatory measures by government entities designed to set or limit the prices of certain goods and services.
Quantity of Sales
The total number of units of a product or service sold within a specific period.
Price Effect
The impact that changing prices have on the demand and supply of goods and services in the market.
- Recognize the impact of government interventions like price controls and taxations on market outcomes.
Verified Answer
ND
Learning Objectives
- Recognize the impact of government interventions like price controls and taxations on market outcomes.