Question

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.

Answer 1

Option B

Step-by-step 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.