Price Controls

question 138

Multiple Choice

Price controls:

• A) are regulations that sets a maximum or minimum legal price for a particular good.
• B) allow a market to reach equilibrium.
• C) prevent a good from being bought or sold.
• D) All of these are true.

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Definitions:

Fixed Proportions

A production scenario where inputs must be used in constant ratios, lacking flexibility in substitution or adjustment.

Input

Factors including workforce, materials, and financial assets employed in the process of producing goods and services.

Resource Demand

The desire and ability of businesses or individuals to acquire economic resources or inputs for the production of goods and services.

Product Requirement

Specifications or criteria that a product must meet related to its design, functionality, and performance.