Asked by
Helan Thapa Magar
on Oct 13, 2024
Verified
Which of the following government programs will create a shortage?
A) Support prices.
B) Ceiling prices.
C) Sales tax.
D) None of these choices will create a shortage.
Support Prices
Government-authorized price levels for agricultural products designed to stabilize farmers' incomes by buying surplus or offering price guarantees.
Ceiling Prices
Maximum legal prices set by governments for essential goods or services, intended to prevent prices from rising above a certain level during shortages or periods of high inflation.
Sales Tax
A tax on sales or on the receipts from sales.
- Elucidate the consequences of public policies including rent stabilization, wage floor statutes, usury restrictions, and market price supports on the economic market.
Verified Answer
BV
Learning Objectives
- Elucidate the consequences of public policies including rent stabilization, wage floor statutes, usury restrictions, and market price supports on the economic market.