When the government prevents prices from adjusting naturally to supply and demand, it Group of answer choices equates the amount buyers want to buy with the amount sellers want to sell. adversely affects the allocation of resources. improves equality and efficiency. improves efficiency but reduces equality.
Added by Joseph P.
Step 1
Step 1: When the government prevents prices from adjusting naturally to supply and demand, it creates a situation where the amount buyers want to buy may not match the amount sellers want to sell. Show more…
Show all steps
Your feedback will help us improve your experience
Luke Humphrey and 59 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
When do markets fail to allocate resources efficiently? Question 60 options: when households and firms act in their own self-interest when the government refuses to intervene in private markets when property rights are not well established when prices fluctuate
Luke H.
In the basic supply-and-demand model, a buyer only purchases a good when? if the price is lower than it was previously. if the price of the good covers the producers’ costs of production. if the price is less than they are willing to pay. if doing so increases the well-being of society. if they are forced to do so.
Andrew D.
When positive externalities are present in a market, then compared to the socially optimal outcome: the market produces too much at too high a price. the market produces too little and too high a price. the market produces too little at too low a price. the market produces too much at too low a price.
Breanna O.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
Watch the video solution with this free unlock.
EMAIL
PASSWORD