Suppose a Good Is Underpriced, and a Line Forms to Allocate

question 55

Multiple Choice

Suppose a good is underpriced, and a line forms to allocate the good. A politician notices that there are pregnant women in line and a law is passed stating that they are allowed to move to the front of any line. This will result in:

• A)no significant change in the number of pregnant women in line, but they will always be first in line.
• B)more pregnant women in lines.
• C)fewer pregnant women in front.
• D)economics can't answer this kind of question.

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Definitions:

Hypothetical Group

An imagined or theoretical group of individuals created for the purpose of discussion, analysis, or experimentation.

Reliable

Consistently good in quality or performance; able to be trusted.

Observations

The action or process of closely monitoring or noticing something or someone, often to gather data or information.

Agreement

A mutual understanding or arrangement, often formalized, between two or more parties.