An Economic Advisory Committee Is Split on a Decision on How

question 99

Multiple Choice

An economic advisory committee is split on a decision on how to react to an export ban by Mexico of avocados.Isaac wants to put a price ceiling on avocados to ensure an adequate demand; Flora wants to put a price floor on avocados to ensure an adequate supply.April claims that doing nothing is the best response.Who understands economics the best?

• A) Isaac
• B) Flora
• C) April
• D) none of them,since none of these policies will organize this disrupted market
• E) Any of the responses will work under the proper circumstances.