Which of the Following Would Be the Most Likely Result

question 213

Multiple Choice

Which of the following would be the most likely result of a binding price ceiling imposed on the market for rental cars?

• A)frequent rental programs such as "Rent nine times and the tenth rental is free!"
• B)enhanced maintenance programs to promote the high quality of the cars
• C)free gasoline given to people as an incentive to a rent a car
• D)slow replacement of old rental cars with newer ones

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Definitions:

Regulation Dilemma

The challenge of finding the balance between necessary governmental regulations and the freedom for businesses to operate efficiently.

Pure Monopolies

Market situations where a single company or entity exclusively controls the supply of a particular good or service.

Policy Options

A range of strategies or actions that governments or organizations can consider to address specific issues or achieve desired outcomes.

Price Discrimination

The approach of a single supplier offering the same or similar products or services at diverse pricing points in separate markets.