chapter 3 & 4 quiz
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Some people choose to live close to the city center; others choose to live away from the city center and take a longer commute to work every day. Does this mean that those who stay away from the city center are being irrational?
No, because their opportunity cost of commuting must be lower
Which of the following statements are true? (Check all that apply.)
A. A government price control can be used to bring markets into equilibrium. B. A government price control will always cause the quantity demanded to exceed the quantity supplied. C. Equilibrium is attained when prices are allowed to respond to market pressure. D. A binding price ceiling will always cause the quantity demanded to exceed the quantity supplied (C and D only)
