In 2008, Zimbabwe Ran Out of Locally Produced Coca-Cola and Local

question 272

Multiple Choice

In 2008, Zimbabwe ran out of locally produced Coca-Cola and local Coke bottlers were not able to import the concentrated syrup needed to make Coke from the United States because they could not obtain U.S.dollars.A small amount of Coke was imported from South Africa, but a single bottle sold for around 15 billion Zimbabwean dollars.Zimbabwe was experiencing rapid increases in the price level, which is known as

• A)stagflation.
• B)deflation.
• C)inflation.
• D)hyperinflation.
• E)disinflation.

---

Definitions:

Price Ceiling

A government-imposed maximum price that can be charged for a good or service, intended to protect consumers from high prices.

Market Demand

The aggregate of a good or service that each consumer in a market is eager and qualified to purchase at differing prices.

Binding

A situation where a restriction, such as a price ceiling or floor, actually affects the market outcome because it is set above or below the equilibrium price.

Rent Control

Government policy or laws that set limits on the amount of rent a landlord can charge tenants, often aimed at making housing affordable.