Price controls will tend to cause misallocation of resources because

Asked by wiki @ 12/07/2022 in Business viewed by 167 People

Answered by wiki @ 12/07/2022

Price controls will tend to cause mis-allocation of resources because the cost of production (or opportunity) does not match market prices any more.

Explanation:

Price controls can be as high and low prices as possible. You can control demand and balance the market whether above or below it:

Higher prices may reduce food costs and make it easy to buy, but the downside of high prices can lead to a decline in supply and a shortage.
The recipients of prices may increase the minimum prices..
In farming, they were used to increase farmers' incomes. Minimum prices however lead to surplus supplies, which mean the government must buy surpluses.

How do lower prices tend to affect demand

Asked by wiki @ 15/06/2021 in Social Studies viewed by 241 persons

How do lower prices tend to affect demand? A. They tend to increase the availability of a product. B. They tend to decrease the availability of a product. C. They …

A mutation in a gene that controls mitosis may cause

Asked by wiki @ 11/06/2021 in Biology viewed by 226 persons

A mutation in a gene that controls mitosis in cells may cause? a) cancer. b) cystic fibrosis. c) albinism. d) meiosis.

Food contamination caused by pathogens can be controlled by

Asked by wiki @ 14/06/2021 in Business viewed by 261 persons

By what food contamination caused by pathogens on a food handler body can be controlled by good personal hygiene, time-temperature control, reducing cross-contamination, and proper cleaning and sanitizing

Price controls on goods can be set by

Asked by wiki @ 13/06/2021 in History viewed by 297 persons

Price controls on goods can be set by consumers economists governments producers

Which of these controls prices and availability in an industry

Asked by wiki @ 11/06/2021 in History viewed by 271 persons

Which of these controls prices and availability in an industry? O A. Company O B. Corporation O C. Monopoly O D. Shareholder

A binding price ceiling on apartments effective rent control will

Asked by wiki @ 10/06/2021 in Business viewed by 223 persons

Binding price ceiling on apartments (effective rent control) will: a. increase the quantity supplied of rental housing. b. decrease the quantity demanded of rental housing. c. cause the quantity supplied …

In a planned economy prices of commodities are controlled by

Asked by wiki @ 10/06/2021 in English viewed by 377 persons

In a planned economy, prices of commodities are controlled by _________. A. Supply and demand B. Producers and consumers C. The government D. Private enterprises Please select the best answer …

When demand is inelastic a decrease in price will cause

Asked by wiki @ 26/11/2021 in Business viewed by 308 persons

When demand is inelastic and price is decreased: a. quantity demanded and total revenue fall to zero. b. the effects of the decrease in price on total revenue and the …

When demand is inelastic an increase in price will cause

Asked by wiki @ 28/10/2021 in Business viewed by 280 persons

When demand is inelastic, an increase in price will cause a. a decrease in total revenue. b. no change in total revenue but an increase in quantity demanded. c. no …

Where do exotic species tend to cause the most problems

Asked by wiki @ 11/06/2021 in Biology viewed by 211 persons

Where do exotic species tend to cause the most problems?

Which of the following would cause consumer prices to drop

Asked by wiki @ 11/06/2021 in Business viewed by 281 persons

Which of the following would cause prices to drop? A. Increased production by business B. Increased taxes on business C. Higher levels of demand by consumers D. A reduction in …

In a market economy a high price will usually cause

Asked by wiki @ 10/06/2021 in Social Studies viewed by 281 persons

A market economy, a high price will usually cause A) producers to offer less and consumers to buy less. C) producers to supply more and consumers to buy less. D) …