Which of the following statements is correct?
A)Low prices may not always be in the public interest.
B)If prices on scarce resources are set "too low," consumers will receive the "wrong" signals and be encouraged to consume more, thus squandering resources.
C)Raising prices on scarce resources is generally politically unpopular.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

All three statements are correct. 
A) Low prices may not always be in the public interest because they can lead to overconsumption of resources or encourage low quality products that may be harmful to consumers.
B) Setting prices too low on scarce resources can lead to overconsumption and waste, rather than encouraging conservation and efficient use.
C) Raising prices on scarce resources is generally politically unpopular because it may increase the cost of living for consumers and lead to public backlash.

Which of the Following Statements Is Correct