There is a trade-off between having prices that the government believes are too low and having a chronic excess supply
Indicate whether the statement is true or false
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An article in the Wall Street Journal in early 2001 noted two developments in the market for laser eye surgery. The first development concerned side effects from the surgery, including blurred vision
The second development was that the companies renting eye-surgery machinery to doctors had reduced their charges. In the market for laser eye surgeries, these two developments A) decreased demand and increased supply resulting in an increase in both the equilibrium quantity and the equilibrium price of laser eye surgeries. B) decreased demand and increased supply, resulting in a decrease in both the equilibrium price and the equilibrium quantity of laser eye surgeries. C) decreased demand and decreased supply, resulting in a decrease in the equilibrium quantity and an increase in the equilibrium price of laser eye surgeries. D) decreased demand and increased supply, resulting in a decrease in the equilibrium price and an uncertain effect on the equilibrium quantity of laser eye surgeries.
Many governments are currently investing in:
A. less roadways. B. communications infrastructure. C. less ports, given the decreasing importance of international business. D. All of these are true.
The CPI for all goods and services excluding food and energy is called a. a hedonic price index. b. the CPI basis. c. the core CPI
d. the producer price index.
Producers' political power and strong stake in the regulatory outcome lead them, in effect, to control the regulating agency and prevail on it to serve producer interests is called the:
a. capture theory of regulation b. tying contract c. exclusive dealing d. interlocking directorate