The Presence of a Price Control in a Market for a Good

question 122

Multiple Choice

The presence of a price control in a market for a good or service usually is an indication that

• A) an insufficient quantity of the good or service was being produced in that market to meet the public's need.
• B) the usual forces of supply and demand were not able to establish an equilibrium price in that market.
• C) policymakers believed that the price that prevailed in that market in the absence of price controls was unfair to buyers or sellers.
• D) policymakers correctly believed that,in that market,price controls would generate no inequities of their own.

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Definitions:

Discrete Random Variable

A variable that can take on a countable number of different values, each with a certain probability, often used in statistical analysis.

Probability Histogram

A graphical representation of the distribution of a set of data, showing the probabilities or frequencies of occurrence of different outcomes.

Probability Z

A measure used in statistics that describes the number of standard deviations a data point is from the mean in a normal distribution.

Continuous Random Variable

A type of random variable that can take an infinite number of values within a given range.