Answer:
b. a natural response to a sudden increase in demand.
Explanation:
Price gouging -
It refers to the situation , when the seller increases the price of his services and goods to a very high level , which is a unethical situation , is referred to as price gouging .
The situation of price gouging , is very commonly observed in any natural disaster , where due to shortage of foods and other item , the price of the food increases to a very high price , is referred to as price gouging .
Hence , from the question,
The correct option is b.
Answer:
C. Decreases money supply
Explanation:
The contractionary fiscal policy happens when the central bank of a particular nation raises its interest rates to prevent inflation.This will result to a decrease in money supply in the economy.The government expenditures are cut-down and there will be increased taxes causing the budget surplus of the government to increase.
<span>This shows that the board has decided to re-invest the profits in the business instead of paying it to common shareholders. This is one of the drawbacks of owning common stock in comparison to preferred stock. Dividends and other company earnings are not always shared with the stockholder.</span>
The answer should be D. Introduce a price ceiling forwater.
