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    Economics Principles and Policy Study Set 1
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    Exam 14: The Case for Free Markets: the Price System
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    Prohibiting Price Increases in Situations of True Scarcity
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Prohibiting Price Increases in Situations of True Scarcity

Question 49

Question 49

Multiple Choice

Prohibiting price increases in situations of true scarcity


A) prevents the market mechanism from reallocating resources more efficiently.
B) discourages production.
C) may lead to extreme shortages of vitally needed products.
D) All of the above are correct.

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