Which of the Following Would Be the Least Likely Result

question 134

Multiple Choice

Which of the following would be the least likely result of a binding price ceiling imposed on the market for rental cars?

• A)an accumulation of dirt in the interior of rental cars
• B)poor engine maintenance in rental cars
• C)free gasoline given to people as an incentive to a rent a car
• D)slow replacement of old rental cars with newer ones

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Definitions:

Variability

The extent to which data points in a set differ from each other and from the mean or average.

Incentive Obstacles

Challenges or barriers that prevent the effective use of incentives to motivate or encourage desired behaviors.

Market Power

The ability of a company or entity to influence the price and terms of products or services in a market, often due to its size, influence, or share of the market.

Two-Part Tariffs

A pricing strategy that includes a fixed fee plus a variable fee based on usage or consumption.