If a price above equilibrium is imposed on a market, welfare will increase when the price control is lifted. If a price control is below equilibrium and then is repealed and allowed to rise to equilibrium, welfare in the system will increase.
A) The first statement is true and the second is false.
B) The first statement is false and the second statement is true.
C) Both statements are false.
D) Both statements are true.
Correct Answer:
Verified
Q35: The price in the market has fallen
Q36: If the price of roses increases the
A)demand
Q37: If a good is inferior, then an
Q38: A long hot summer has increased the
Q39: Let demand be given by P =
Q41: As the demand curve becomes steeper, the
Q42: Let supply be given by P =
Q43: If the government wishes to raise revenue
Q44: Let supply be given by P =
Q45: According to the model of supply and
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