Your cellular phone contract is due for renewal and the company offers you a new free phone. Since you want to use your new phone, you decide to recycle your old phone. Your action a. Creates wealth by moving the phone from lower value use to higher value use b. Destroys wealth since you lose your phone c. Creates wealth by making you feel richer d. All of the above

creates wealth by moving the phone from lower value use to higher value use.

Explanation:

Wealth creation is maximised when an item is of greater value to the user. When the old phone is recycled, it has a higher value to the company.

The company will refurbish the phone and sell to a new user who will maximise it's use.

So this action creates wealth by prolonging the useful life of the old phone.

If the user had discarded the phone he would have destroyed wealth because the usefulness of the phone would have been wasted.

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.