The Price of a Good or a Service Can Be

question 103

Multiple Choice

The price of a good or a service can be determined by free interaction of demand and supply or by a government price regulation.One important difference between these two price-determining methods is

• A)there are no shortages or surpluses at the free-market equilibrium price.
• B)regulated prices are fairer since more people can then afford the goods or services.
• C)that a regulated price above the equilibrium price will always result in shortages.
• D)the government is in the best position to know the needs of the people.
• E)one is capitalist and the other is communist.

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