Laws That Prohibit Price Gouging Are Often Politically

question 193

Multiple Choice

Laws that prohibit price gouging are often politically

• A) popular, but result in shortages.
• B) popular, but result in surpluses.
• C) unpopular and result in shortages.
• D) unpopular and result in surpluses.

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Definitions:

Multiple Endorsements

Refers to the practice in banking and finance where a document, such as a check, is signed over to another party multiple times.

Liable

Being legally responsible for something, typically referring to obligations in law.

Primary Liability

The direct and immediate responsibility to fulfill an obligation or repay a debt, without necessarily having recourse against others for reimbursement.

Secondary Liability

Secondary Liability refers to the legal responsibility of a third-party for the actions of another, such as a parent company being liable for the actions of its subsidiary.