Question

A. What is the cost of the restriction in terms of sharpe’s measure? (do not round intermediate calculations. Enter your answer as decimals rounded to 4 places. ).

Answer 1

The two forms of price control includes:

• Price ceiling
• Price floor

What is Restriction of Cost?

This refers to the price controls which are enforced in maket in order to regulate price of goods or services which can be charged.

With this in mind, we can see that this helps to ensure fair pricing of goods to avoid arbitrary prices set by sellers which can lead to scarcity of goods.

Please  note that your question is incomplete so I gave you a general overview to help you get a better understanding of the concept.

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