Consumers Have the Greatest Incentive to Lobby for Price Controls

question 156

Multiple Choice

Consumers have the greatest incentive to lobby for price controls in the short run when supply is:

• A) inelastic and demand increases
• B) inelastic and demand decreases.
• C) elastic and demand increases.
• D) elastic and demand decreases.

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Definitions:

Hot Chocolate Sales

The commercial activity of selling hot chocolate, often used as an example in economic studies of seasonal demand.

Volunteer Bias

A distortion in research results due to differences between those who choose to participate in studies and those who do not.

Experimenter's Bias

A form of bias in research where the outcomes are influenced by the researcher's expectations or preferences.

Confirmation Bias

A cognitive bias that leads individuals to give more weight to evidence that confirms their existing beliefs and dismiss evidence that contradicts them.