Suppose a good is underpriced, and a line forms to allocate the good. A politician notices that there are pregnant women in line and a law is passed stating that they are allowed to move to the front of any line. This will result in:
A)no significant change in the number of pregnant women in line, but they will always be first in line.
B)more pregnant women in lines.
C)fewer pregnant women in front.
D)economics can't answer this kind of question.

Question

Quizplus · Accepted Answer

The law allowing pregnant women to move to the front of the line creates an incentive for more pregnant women to join the line in order to receive the benefit of going to the front. Therefore, there will likely be more pregnant women in the line overall.

Suppose a Good Is Underpriced, and a Line Forms to Allocate