1. Rank the following markets from that where price controls would cause the greatest disequilibrium between supply and demand down to those where controls would cause the smallest disequilibrium. A. 4 B. 1 C. 3 D. 2 - Rice in a poor country (elasticity of demand low; elasticity of supply low) - Airline travel in a rich country (elasticity of demand high; elasticity of supply high) - Veterinary services (elasticity of demand medium, elasticity of supply low) - Fashion (elasticity of demand high, elasticity of supply medium) 2. Rank these in terms of the price change with a sudden supply shortage. A. 2 B. 1 C. 3 D. 4 - Rice in a poor country (elasticity of demand low; elasticity of supply low) - Airline travel in a rich country (elasticity of demand high; elasticity of supply high) - Veterinary services (elasticity of demand medium, elasticity of supply low) - Fashion (elasticity of demand high, elasticity of supply medium)
1. Rank the following markets from that where price controls would cause the greatest disequilibrium between supply and demand down to those where controls would cause the smallest disequilibrium.
A. 4 B. 1 C. 3 D. 2 -
Rice in a poor country (
- Airline travel in a rich country (elasticity of demand high; elasticity of supply high)
- Veterinary services (elasticity of demand medium, elasticity of supply low)
- Fashion (elasticity of demand high, elasticity of supply medium)
2. Rank these in terms of the price change with a sudden supply shortage.
A. 2 B. 1 C. 3 D. 4
- Rice in a poor country (elasticity of demand low; elasticity of supply low)
- Airline travel in a rich country (elasticity of demand high; elasticity of supply high)
- Veterinary services (elasticity of demand medium, elasticity of supply low)
- Fashion (elasticity of demand high, elasticity of supply medium)
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