A March 2009 article in the Zimbabwe Herald indicates that the government there has removed price controls on certain foodstuffs and household items. What result would you expect from this action?
A) Market prices will fall as firms produce more.
B) Prices should rise, firms will produce more, and shortages will disappear.
C) There should be no change in market prices, but shortages will disappear.
D) Prices should rise, consumers will purchase less, and shortages will increase.
Correct Answer:
Verified
Q102: TABLE 4-4 Q103: What action by the government will always Q104: Assume a price floor is imposed in Q105: FIGURE 4-4 Q106: Suppose the equilibrium price of bread is Q108: Assume a price floor is imposed in Q109: TABLE 4-4 Q110: Assume a price floor is imposed at Q111: FIGURE 4-5 Q112: Assume a price ceiling is imposed at Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
