Which of the following statements is FALSE? Select one: a. The rationing function of prices is not allowed to freely operate when the government imposes price controls. b. Price controls may take the form of price ceilings or price floors. c. Rent controls are examples of price floors. d. Price ceilings below the equilibrium price can cause black markets to develop.

Jaxon Hamilton

Jaxon Hamilton

Answered question

2022-07-28

Which of the following statements is FALSE?
Select one:
a. The rationing function of prices is not allowed to freely operate when the government imposes price controls.
b. Price controls may take the form of price ceilings or price floors.
c. Rent controls are examples of price floors.
d. Price ceilings below the equilibrium price can cause black markets to develop.

Answer & Explanation

Raul Garrett

Raul Garrett

Beginner2022-07-29Added 14 answers

Step 1
1) The false statement is : The rationing function of prices is not allowed to freely operate when the government imposes price controls.
Step 2
2) We know that, C / 5 = ( F 32 ) / 9
Putting F = 104 we get, C / 5 = ( 104 32 ) / 9
i.e., C / 5 = 72 / 9
i.e., C / 5 = 8
i.e., C = 5 8
i.e., C = 40
Therefore, 40 C is equivalent to 104 F

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