Choose the statement that is correct. A. Search activity occurs only in markets where there is a shortage. B. When a price is regulated and there is a shortage, search activity increases. C. The opportunity cost of a good is equal to its price. D. Search activity decreases the cost of housing in a rent-controlled market.

Question

Social Studies

Kirsten Reynolds

2 June, 13:03

Choose the statement that is correct. A. Search activity occurs only in markets where there is a shortage. B. When a price is regulated and there is a shortage, search activity increases. C. The opportunity cost of a good is equal to its price. D. Search activity decreases the cost of housing in a rent-controlled market.

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Answers (1)

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Lizbeth Salas · Answer 1

Option B

Explanation:

The correct answer is Option B.

the statement given the opportunity cost of a good is equal to its pricing is incorrect the correct statement is the opportunity cost is equal to pricing plus the value of this e search time spent finding the good.

Search activity occurs in the market where there is a shortage and where there is a surplus. Accordingly, the statement that "Search activity occurs only in markets where there is a shortage" is incorrect.