QUESTION 3 Which of the following is an example of the danger of association versus causation?

Seeing dark clouds in the sky so you grab your umbrella.
Hearing a rooster crow so you think it must be sunrise

Seeing computer prices drop and issume it is because nobody wants computers anymore
Seeing birds flying south so you assume winter is coming,

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.