Failing to understand the signaling role of prices, consumers would complain of ________ and politicians would call for ________.
A) price binding; regulation
B) price gimmicks; antitrust action
C) a price ceiling; a price floor
D) price gouging; price controls

Question

Quizplus · Accepted Answer

When consumers do not understand the signaling role of prices, they may perceive price gouging during periods of high demand or shortage. This may lead to calls for price controls by politicians to address the perceived issue.

Failing to Understand the Signaling Role of Prices, Consumers Would