Asked by
Abigail Gutierrez
on Dec 11, 2024
Verified
When several hurricanes hit Florida in 2004, a number of local governments imposed price controls that prevented sellers from raising their prices for badly needed products like plywood and generators. In the areas where the controls were imposed, they resulted in
A) an expanded availability of these badly needed products.
B) a reduced availability of these badly needed products.
C) an increase in the speed with which people recovered from the hurricanes.
D) a more efficient allocation of these goods for which price controls were in effect.
Price Controls
Government-imposed limits on the prices charged for goods and services in a market, aimed at maintaining affordability or preventing inflation.
Hurricane
A powerful tropical cyclone with heavy rain and strong winds, originating over warm ocean waters and potentially causing significant damage upon landfall.
Availability
The state of being able to be used or obtained, typically referring to goods, services, or resources.
- Understand the economic logic that influences the determination of prices in the marketplace, as well as the impact of price regulation on the availability of products.
Verified Answer
GP
Learning Objectives
- Understand the economic logic that influences the determination of prices in the marketplace, as well as the impact of price regulation on the availability of products.