Which of the Following Is a Major Disadvantage of Setting

question 47

Multiple Choice

Which of the following is a major disadvantage of setting the price of a good below equilibrium and using waiting in line rather than price to ration the good?

• A) Compared to price rationing, waiting in line is unfair since it is easier for those with higher incomes to wait in line.
• B) Waiting in line imposes a cost on the consumer; paying higher prices does not.
• C) Both waiting in line and higher prices are costly to consumers, but unlike the payment of a higher price, waiting in line does not provide suppliers with an incentive to expand future output.
• D) Waiting in line benefits consumers at the expense of producers.

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Definitions:

Lightness Constancy

The visual perception phenomenon whereby the perceived color or brightness of objects remains constant despite changes in illumination.

Relative Luminance

The brightness of an object compared to the brightness of a similarly illuminated object that appears to be white or highly reflective.

Perceptual Set

A mental predisposition or readiness to perceive certain aspects of available sensory data and ignore others.

Mental Predisposition

An individual's inclination or tendency to think, feel, or behave in a particular way due to a combination of genetic, environmental, and psychological factors.