Why do Ferraris cost so much?
What if tomorrow I saw a sign placed by the government on the dealership window that said “Free Ferraris”, would I now be able to own one?
What would be the fairest way to distribute them for both Ferrari and those that want them? What would the price be?
Describe the incentives created with government imposed price ceilings. How does pricing (free or government controlled) affect the goods or services you have knowledge of?

Question

Why do Ferraris cost so much?
What if tomorrow I saw a sign placed by the government on the dealership window that said “Free Ferraris”, would I now be able to own one?
What would be the fairest way to distribute them for both Ferrari and those that want them? What would the price be?
Describe the incentives created with government imposed price ceilings. How does pricing (free or government controlled) affect the goods or services you have knowledge of?

anonymous · Answer

20. (3)	Check all that apply (You must choose exactly three)
What happens to Big Macs if:
McDonald's suppliers raise the cost of lettuce and pickles to each store.
  	Demand increases
  	Demand decreases
  	Supply increases
  	Supply decreases
  	Price increases
  	Price decreases
  	Quantity increases
  	Quantity decreases