Asked by Ysobelle Eustaquio on Jul 22, 2024
Verified
Inefficient allocations of goods to consumers often result from:
A) price ceilings.
B) producer surpluses.
C) increases in income.
D) market transactions.
Inefficient Allocations
Situations where resources are not optimally distributed, often leading to waste or unmet potential within an economy or system.
Price Ceilings
A cap set by the government on the maximum price that can be asked for a good, service, or resource.
Producer Surpluses
The difference between the actual price a producer receives for a product and the minimum price they would be willing to accept.
- Comprehend the principles of price ceilings and their effects on market balance.
- Evaluate the impact of various market controls (including price ceilings, price floors, and quotas) on creating inefficiencies like deadweight losses.
- Evaluate the effects of market interventions on consumer and producer behavior.
Verified Answer
Learning Objectives
- Comprehend the principles of price ceilings and their effects on market balance.
- Evaluate the impact of various market controls (including price ceilings, price floors, and quotas) on creating inefficiencies like deadweight losses.
- Evaluate the effects of market interventions on consumer and producer behavior.
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