Why Do Many Consumers and Politicians Advocate for Price Controls

question 222

Multiple Choice

Why do many consumers and politicians advocate for price controls?

• A) Price controls are the only way for the poor to obtain certain goods when prices rise.
• B) Most consumers and politicians do not advocate for price controls, because they understand their negative consequences.
• C) Price controls appear to be a straightforward response to the problem of price increases.
• D) The gains in consumer surplus typically outweigh the loss in producer profits.

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Definitions:

Wholesale Selling

The act of selling goods in large quantities at lower prices to retailers or other merchants, who then sell to end consumers.

Account Representation

The process or act of managing customer accounts by a designated sales or service representative within an organization.

Detail Selling

A sales strategy focusing on the specific features and benefits of a product or service to persuade potential customers.

Business System

An organized set of procedures, processes, and methods that a company uses to conduct business and achieve its objectives.