If the Equilibrium Price of Petrol Is R10

question 11

True/False

If the equilibrium price of petrol is R10.00 per litre and the government places a price ceiling on petrol of R15.00 per litre, the result will be a shortage of petrol.

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Definitions:

Chief Executive

The highest-ranking executive in a company or government, responsible for making major corporate or policy decisions.

Administrative State

A concept that describes a government in which the executive branch, through various agencies, plays a significant role in regulation and policy implementation beyond traditional law enforcement.

Patronage

The power to control appointments to office or the right to privileges, often used by politicians to reward individuals for their support or loyalty.

Civil Service

A body of government employees selected based on merit rather than political affiliation, tasked with the implementation of public policy.