This is an example of a price ceiling, what means <u>price management.</u>
In economics theory, price is given through the interaction between supply and demand for the good or service. In this way, the scarcity of a product in the face of high demand increases its price, as an abundance in the face of low demand, decreases the price. T<u>he equilibrium price occurs when the supply and demand for the good or service equals, leaving the economy at the optimum, with maximum efficiency.
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However, in certain strategic markets, the government prefers to intervene, either through subsidies or a limit on prices. The case of gasoline at the end of the 20th century is an example of this. The government instituted a ceiling, an artificial limit to the price of gasoline, driving the market to work below the equilibrium price.
The reasons that make the government intervene are diverse, and may be ideological through more interventionist governments, but may also be momentarily necessary, such as in the case of supply shock, when production is affected drastically by a random event, such as the oil shock.
Answer: (1) North Atlantic Treaty Organization
(2) Warsaw Pact
(3) the USSR
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C. The economist that most supported the idea that government should spend money to help fuel economic growth during periods of economic crisis is John Maynard Keynes
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After the emergence of the new democratic South Africa, the leaders of the Black community appealed to its members to forgive the Whites, who till then practised the oppressive policy of Apartheid and inflicted humiliation and injustice to the Black population. The Black leaders proposed the establishment of a new order based on the equality of races. The natives agreed that although they formed the majority of the population, their rule wouldn't be absolute as it had been under the Whites hitherto and that it would be a true democracy with each citizen being treated equally by law and government
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