Options:
A price cap regulation _______.
a. eliminates deadweight loss
b. is often combined with a government subsidy,
c. which makes the market efficient is a price ceiling
d. sets price equal to marginal cost
Answer:
<u>c. which makes the market efficient is a price ceiling</u>
<u>Explanation:</u>
Price ceilings are usually enforced in other to maintain an efficient market. They directed mainly to sellers which restricts the price of a commodity to a maximum amount.
A good example is the price of<em> gasoline</em>, in many countries, the law mandates a maximum price gas stations can sell.
The idea is that the success of any company depends on the consumer: the price and quality of the product determines how much money the firm will make. In this sense, the consumer organically selects the best companies by spending money on those companies, and in doing so is "king" because consumers determine which companies succeed and fail.
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Answer:
(b) short futures position
Explanation:
The short futures position is an unlimited profit, unlimited risk position that can be entered by the futures speculator to profit from a fall in the price of the underlying.
The short futures position is also used by a producer to lock in a price of a commodity that he is going to sell in the future.
The answer would be b you should always read the fine print
