Which of the Following Statements Is (Are) TRUE? I

question 13

Multiple Choice

Which of the following statements is (are) TRUE? I. Quantity controls drive a wedge between the demand price and the supply price of the good.
II) The difference between the demand price and the supply price at the quota limit is consumer surplus.
III) Quantity controls have no undesirable side effects.

• A) I
• B) II
• C) II and III
• D) I, II, and III

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Definitions:

Unbounded Problem

A scenario in optimization where the solution can infinitely improve, meaning there are no constraints limiting the value of the objective function.

Objective

A goal or target that is aimed to be achieved, usually specific, measurable, and time-bound.

Without Bound

An expression indicating that there is no limit or boundary to a certain condition or value.

Time Constraint

A specific limit or period within which a task or project must be completed.