Which of the Following Is a Likely Outcome of Price

question 78

Multiple Choice

Which of the following is a likely outcome of price controls and quota limits?

• A) prices higher than the market equilibrium price
• B) illegal activity as people invent ways to get around the market constraint
• C) shortages and units of output that must be disposed of
• D) shortages and inefficiency caused by buyers searching for units of the good

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Definitions:

Stock Market Index

A statistical measure that shows changes in the stock market by tracking a selected set of stocks to represent a particular market or sector.

Project Cash Flows

Net amounts of cash that are to be received or paid out over the duration of a project, determining its profitability and feasibility.

Predictable

Capable of being foreseen or declared in advance with a high degree of certainty.

Correlated

When two variables have a mutual relationship that affects each other's movements or values.