Business, 24.03.2020 05:38 lclaudettecarte3550

Which of the following statements is true of active secondary markets?

a. They can undo some of the intended effects of a price ceiling
b. They exacerbate excess demand for a product
c. They exacerbate excess supply for a product
d. All of the above

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Answer from: koryn4880

They can undo some of the intended effects of a price ceiling-A

Explanation: An active secondary market also called stock market is where investors,( individuals and corporate) constantly buy and sell securities they already own. Apart from stock, l mutual funds and bonds on sold in secondary markets.

In an active secondary market, Price ceiling can distort the market by creating excess demand, the secondary market then prevents market forces from raising the price and eliminating excess demand.

Activities in the secondary market typically occurs when those goods bought at cheaper price sell to those were not lucky to buy at a higher price.

if the ceiling price is above the equilibrium price? It doesn't affect the market at all because buyers will still buy at the price the consumers are selling.

Answer from: Quest

1 all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

Answer from: Quest

i'ts proportional. if the inflation rate is 12% for example, the cpi will be 12% less.

hope it ,

bioteacher101

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Which of the following statements is true of active secondary markets?

a. They can undo...

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