Suppose you are an economist working for the Antitrust Division of the Department of Justice. In the following case you are given the task of determining whether the behavior warrants an antitrust investigation for possible illegal acts or is just an example of undesirable, but not illegal, tacit collusion. The two largest credit card companies, Passport and OmniCard, have required all banks and retailers who accept their cards to agree to limit their use of rival credit cards.
A. This warrants an antitrust investigation.
B. This is just an example of undesirable, but not illegal, tacit collusion.
C. This is not collusion.

answer; closing the loop;

answer; at prices that violate government price regulations;

answer(d) the growth of consumption is likely to remain sluggish even as the economy begins to recover.;

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.