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
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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