How price and quantity controls create problems and can make a market inefficient? Concept Introduction: Price control: When there is disequilibrium in the economy whether a shortage or surplus the government has to control the prices to attain the equilibrium. For this the government uses variety of price control the main of them is price ceiling and price floor . Quantity Control: The quantity control of the government means the government puts a restriction on certain types of goods and services that are bought and sold in the market.

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Definition Definition Degree to which financial markets incorporate all available information into the prices of assets. In a more efficient market, the prices reflect the available information more than that in a weak efficient market. It is difficult for investors to outperform the market in a strong efficient market. This is because all the available information is already discounted in the asset's price. However, in a weak-form efficiency, the market does not reflect all information in the asset's price. As a result, it becomes easier to generate better returns in a weak form or an inefficient market.

Chapter 5, Problem bWYWL

To determine

To explain:

How price and quantity controls create problems and can make a market inefficient?

Concept Introduction:

Price control: When there is disequilibrium in the economy whether a shortage or surplus the government has to control the prices to attain the equilibrium. For this the government uses variety of price control the main of them is price ceiling and price floor.

Quantity Control: The quantity control of the government means the government puts a restriction on certain types of goods and services that are bought and sold in the market.

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Definition Definition Degree to which financial markets incorporate all available information into the prices of assets. In a more efficient market, the prices reflect the available information more than that in a weak efficient market. It is difficult for investors to outperform the market in a strong efficient market. This is because all the available information is already discounted in the asset's price. However, in a weak-form efficiency, the market does not reflect all information in the asset's price. As a result, it becomes easier to generate better returns in a weak form or an inefficient market.

Chapter 5, Problem bWYWL

To determine

To explain:

How price and quantity controls create problems and can make a market inefficient?

Concept Introduction:

Price control: When there is disequilibrium in the economy whether a shortage or surplus the government has to control the prices to attain the equilibrium. For this the government uses variety of price control the main of them is price ceiling and price floor.

Quantity Control: The quantity control of the government means the government puts a restriction on certain types of goods and services that are bought and sold in the market.

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Answer 3

Question

Definition Definition Degree to which financial markets incorporate all available information into the prices of assets. In a more efficient market, the prices reflect the available information more than that in a weak efficient market. It is difficult for investors to outperform the market in a strong efficient market. This is because all the available information is already discounted in the asset's price. However, in a weak-form efficiency, the market does not reflect all information in the asset's price. As a result, it becomes easier to generate better returns in a weak form or an inefficient market.

Chapter 5, Problem bWYWL

To determine

To explain:

How price and quantity controls create problems and can make a market inefficient?

Concept Introduction:

Price control: When there is disequilibrium in the economy whether a shortage or surplus the government has to control the prices to attain the equilibrium. For this the government uses variety of price control the main of them is price ceiling and price floor.

Quantity Control: The quantity control of the government means the government puts a restriction on certain types of goods and services that are bought and sold in the market.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition Degree to which financial markets incorporate all available information into the prices of assets. In a more efficient market, the prices reflect the available information more than that in a weak efficient market. It is difficult for investors to outperform the market in a strong efficient market. This is because all the available information is already discounted in the asset's price. However, in a weak-form efficiency, the market does not reflect all information in the asset's price. As a result, it becomes easier to generate better returns in a weak form or an inefficient market.

Chapter 5, Problem bWYWL

To determine