In 1972-1973, the swimming pools in California were heatedbut homes in New Jersey were cold, is an example of a(n):

Question

Quizplus · Accepted Answer

The fact that swimming pools in California were heated while homes in New Jersey were cold suggests a misallocation of resources caused by price controls. Price controls interfere with the market's ability to allocate resources efficiently by distorting the signals sent by prices, leading to shortages or surpluses of goods and services. In this case, it is likely that California had access to cheaper energy resources that were not available in New Jersey because of price controls.

In 1972-1973, the Swimming Pools in California Were Heatedbut Homes