Prohibiting Price Increases in Situations of True Scarcity

question 144

Multiple Choice

Prohibiting price increases in situations of true scarcity

• A)prevents the market mechanism from reallocating resources more efficiently.
• B)discourages production.
• C)may lead to extreme shortages of vitally needed products.
• D)All of the responses are correct.

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Definitions:

Dermatologist

A medical doctor specializing in the diagnosis and treatment of skin disorders.

Dermatology

The branch of medicine dealing with the skin, nails, hair, and their diseases.

Albinism

A genetic condition characterized by a lack of melanin pigment in the skin, hair, and eyes, leading to sensitivity to sunlight and vision problems.

Pigment

Substances that give color to living organisms, found in skin, hair, plants, and materials used in art and cosmetics.