The Statement That "Price Controls Do Not Eliminate Competition

question 194

Multiple Choice

The statement that "price controls do not eliminate competition":

• A) is false because price controls prevent rich consumers from outbidding poor consumers for goods and services.
• B) is false because firms are no longer allowed to exploit consumers by charging higher prices after hurricanes or major snowstorms.
• C) reflects the idea that consumers will compete for price-controlled products by waiting in line and offering bribes to sellers.
• D) means that sellers will increase the quality of their product when they cannot legally increase their prices.

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Definitions:

Donuts

Circular or ring-shaped fried dough treats, often sweetened and sometimes filled or topped with various ingredients.

Burritos

A Mexican dish consisting of a flour tortilla wrapped or folded around a filling typically including beans, cheese, and meats.

Income

The money received by a person or organization, typically in exchange for goods, services, or investments.

Total Utility

The complete satisfaction or pleasure a consumer derives from consuming a certain quantity of a good or service.