[amp_mcq option1=”Correct” option2=”Wrong” option3=”Uncertain” option4=”None of these” correct=”option3″]<\/p>\n
The correct answer is: C. Uncertain.<\/p>\n
The general price is the price that would prevail in a market if there were no government intervention. It is the price that would be determined by the forces of supply and demand. However, in the real world, there is always government intervention in the market. This intervention can take many forms, such as taxes, subsidies, and regulations. These interventions can distort the market and prevent the general price from being established.<\/p>\n
For example, if the government imposes a tax on a good, the price of that good will increase. This is because the tax will increase the cost of production, which will be passed on to consumers in the form of higher prices. The general price will not be established in this case because the market has been distorted by the government intervention.<\/p>\n
Similarly, if the government subsidizes a good, the price of that good will decrease. This is because the subsidy will lower the cost of production, which will be passed on to consumers in the form of lower prices. The general price will not be established in this case because the market has been distorted by the government intervention.<\/p>\n
Government regulations can also distort the market and prevent the general price from being established. For example, if the government regulates the price of a good, the price of that good will not be determined by the forces of supply and demand. Instead, the price will be determined by the government regulation. In this case, the general price will not be established.<\/p>\n
In conclusion, the general price is the price that would prevail in a market if there were no government intervention. However, in the real world, there is always government intervention in the market. This intervention can take many forms, such as taxes, subsidies, and regulations. These interventions can distort the market and prevent the general price from being established.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”Correct” option2=”Wrong” option3=”Uncertain” option4=”None of these” correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-48946","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"\n