An economic advisory committee is split on a decision on how to react to an export ban by Mexico of avocados.Isaac wants to put a price ceiling on avocados to ensure an adequate demand; Flora wants to put a price floor on avocados to ensure an adequate supply.April claims that doing nothing is the best response.Who understands economics the best?
A) Isaac
B) Flora
C) April
D) none of them,since none of these policies will organize this disrupted market
E) Any of the responses will work under the proper circumstances.

Question

Quizplus · Accepted Answer

April's stance of doing nothing aligns with the economic principle that markets tend to reach equilibrium on their own. Isaac's and Flora's proposals of price ceilings and floors, respectively, could lead to unintended consequences like shortages or surpluses, rather than resolving the issue effectively.

An Economic Advisory Committee Is Split on a Decision on How