Which of the Following Is the Most Correct Statement About

question 139

Multiple Choice

Which of the following is the most correct statement about price controls?

• A)Price controls always help those they are designed to help.
• B)Price controls never help those they are designed to help.
• C)Price controls often hurt those they are designed to help.
• D)Price controls always hurt those they are designed to help.

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Definitions:

Market Price

The market rate for buying or selling an asset or service in a public trading environment.

Producer Surplus

The gap between the minimum amount sellers are prepared to accept for a product or service and the actual payment they get.

Equilibrium

The point at which the quantity of a product or service demanded by consumers equals the quantity supplied by producers, leading to a stable market condition.

Market Equilibrium

The condition in which a market's supply and demand balance each other, and as a result, prices become stable.