Each of the Following Is an Example of the Price

question 150

Multiple Choice

Each of the following is an example of the price mechanism at work,except when

• A)wage and price controls were used during World War II to control inflation.
• B)consumers curtailed driving their cars when the price of gasoline increased dramatically in 2005.
• C)American farmers during World War I expanded production on previously unused land in response to higher crop prices.
• D)factories of gas-guzzling automobiles shut down when the price of gasoline triples in less than three months.

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