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Price Controls Can Generate Inequities

question 273

True/False

Price controls can generate inequities.


Definitions:

Price Elasticity

The measure of responsiveness of the quantity demanded or supplied of a good to a change in its price.

Supply

The total amount of a good or service available for purchase at any given price.

Inelastic Demand

A situation where the quantity demanded of a good or service changes little when its price changes.

Elastic Demand

A condition where the quantity demanded of a product changes significantly in response to changes in its price.

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