If prices are not allowed to rise because of a price ceiling, then:
A) suppliers have an incentive to provide a high level of customer service.
B) suppliers will compensate for the lower price by increasing the quality of their goods.
C) prices do not provide the correct information about consumers' valuation of the good.
D) a shortage will develop, but only temporarily until markets adjust to the lower prices.
Correct Answer:
Verified
Q54: Price ceilings set by the government:
A) are
Q55: Why do you think full-service gas stations
Q56: Typical of price ceilings, the ancient Indian
Q57: The price controls of the early 1970s
Q58: Which observation would be consistent with the
Q60: Use the following to answer questions:
Figure: Effects
Q61: What do price ceilings NOT cause?
A) waiting
Q62: Which statement about price ceilings is correct?
A)
Q63: Use the following to answer questions:
Figure: Costs
Q64: Use the following to answer questions:
Figure: Losses
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