Author Question: Governments do not respond to prices. Indicate whether the statement is true or ... (Read 109 times)

P68T · **on:** Jul 1, 2018

Governments do not respond to prices.

Indicate whether the statement is true or false

Question 2

Most modern financial centers use computers to match buyers and sellers. This absence of personal contact contradicts the definition of a market.

Indicate whether the statement is true or false

bitingbit · **Reply #1 on:** Jul 1, 2018

Answer to Question 1

False. When products or services that governments purchase become more expensive, governments tend to purchase less of the products. For example, when the price of gasoline increased dramatically in the spring of 2006, the state of Georgia restricted the use of school buses.

Answer to Question 2

False. Buyers and sellers need not meet during a market transaction since a market is not tied to a particular location.