The statement that \"price controls do not eliminate competition\": is false bec

Question

The statement that "price controls do not eliminate competition": is false because price controls prevent rich consumers from outbidding poor consumers for goods and services. is false because firms are no longer allowed to exploit consumers by charging higher prices after hurricanes or major snowstorms. reflects the idea that consumers will compete for price controlled products by waiting in line and offering bribes to sellers. means that sellers will increase the quality of their product when they cannot legally increase their prices. Although domestic consumers gain more from free trade than domestic producers lose, the matter may not be that sample. Why might domestic producers also gain from free policies over those that impose tariffs on all goods? because foreign producers will be even worse off because domestic prices are higher under free trade than under protectionism because domestic producers also consume at least some imported goods that cost less because the gains from free trade are random. It is impossible to say who will get them A firm produces volleyballs and soccer balls. What happens to the supply of soccer balls if the market price of volleyballs increases? The opportunity cost of producing soccer balls rises, so the supply curve of soccer balls increases. The opportunity cost of producing soccer balls falls, so the supply curve of soccer balls decreases. The opportunity cost of producing soccer balls rises, so the supply curve of soccer balls decreases. The opportunity cost of producing soccer bails falls, so the supply curve of soccer balls increases.

Explanation / Answer

price is controlled by the government if the govt is not satisfied by the price prevailing in the market. but usually price control results in welfare loss as compared to market driven equilibrium price. here in the question price control will not eliminate competition in the sense that consumer will compete for the price controlled goods...generally govt does price control to save the consumers from exploitation. so this time producers will not compete rather consumers will compete for the products. here in the options consumer side is given . so consumer will compete for the low priced commodities either by waiting for long or to get them quickly they would use unfair means like bribery...this result in loss to consumer nd producer .

so option 3rd is correct.

34) option 3rd is correct. if govt put tariff or quota then definitely goods will be priced high and producers may find difficult to sell their high priced goods. under free trade policies goods may be brought from abroad at cheaper prices than those prevailing in the domestic market and producers could be able to sell their products easily and maximise their profits . and at the same time they can also tconsume these low priced goods themselves.

35) see here volleyballs price has increased then definitely producers will try to produce more volleyballs in order to maimize their profit. if they produce soccer balls then they will be losing profits which they could earn by selling volleyballs because price of volleyballs has increased now. so here opportunity cost of producing soccer balls and selling will be the forgone income by producing volleyblls and selling them. so producers will produce less soccer balls and increase the production of volleyballs. supply of soccer balls decreases.

so option 3 is correct

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