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:

Selectively Permeable

A property of cellular membranes that allows certain molecules or ions to pass through it by means of active or passive transport, while preventing others.

Osmosis

The passive movement of water molecules through a semi-permeable membrane from an area of low solute concentration to an area of high solute concentration.

Simple Diffusion

A process whereby molecules move from an area of higher concentration to one of lower concentration without the need for energy input.

Lipid-Soluble Substances

Compounds that can dissolve in fats and oils, allowing them to easily pass through cell membranes that are composed of lipid bilayers.