Price Controls Are Usually Enacted

question 135

Multiple Choice

Price controls are usually enacted

• A)as a means of raising revenue for public purposes.
• B)when policymakers believe that the market price of a good or service is unfair to buyers or sellers.
• C)when policymakers tax a good.
• D)All of the above are correct.

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Definitions:

Vertical Contracts

Agreements between firms at different levels in the supply chain, such as manufacturers and retailers, to govern the terms of their relationship.

Customers' Goals

The specific objectives or desired outcomes that consumers aim to achieve through the purchase or use of products and services.

Antitrust Enforcement

Government activities aimed at preventing anti-competitive practices, mergers, and monopolies to promote fair competition.

Market Power

The ability of a company or group to manipulate the price of an item in the market by controlling its supply, demand, or both.