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SVEN [57.7K]
3 years ago
5

From an Associated Press article on Venezuela dated January 22, 2008: "... troops are cracking down on the smuggling of food ...

the National Guard has seized about 750 tons of food ... [President] Hugo Chàvez ordered the military to keep people from smuggling scarce items like milk ... He's also threatened to seize farms and milk plants ..." These actions were the result of a price ceiling on food. Which zone (represented by a letter) on the graph reflects this policy, and what does it create?
History
2 answers:
UkoKoshka [18]3 years ago
6 0

The correct answer to this open question is the following.

What this policy reflects is "demand exceeds supply," and what it creates is that "it results in a shortage."

That was the case with Venezuela on January 22, 2008. Furthermore, the crisis accentuated because of some economic and political decisions made by President Chávez, that always supported socialism. These ideas confronted him with private companies in Venezuela and with other countries such as the United States that saw in Chávez a real threat to its economic interests in the region. Even today, with President Nicolás Maduro, Venezuela still has terrible economic crises and the US has decided to exert an economic embargo on Venezuela.

Blizzard [7]3 years ago
5 0
A not sure this is right
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