Question

question 16
3 pts
in 301 ce, the emperor diocletian published the edict of maximum prices in an attempt to control inflation. it imposed severe penalties on those who charged more than the maximum prices. but the law could not be enforced and was revoked shortly afterwards. what would be one possible outcome of diocletian’s law?

• slave sellers would demand that the government lower the legal prices even more.
• slaves sellers would want to improve care for slaves to help buyers.
• more people would find careers in selling slaves.
• there could have been a shortage of slaves on the market as a result of the price law.

Explanation:

To determine the possible outcome of Diocletian's price - control law (a price ceiling on slaves, in this context), we analyze each option:

1. For the option "Slave sellers would demand that the government lower the legal prices even more": Slave sellers are likely to be dissatisfied with the price ceiling as it restricts their revenue. They would not want prices to be lowered further, so this option is incorrect.
2. For the option "Slaves sellers would want to improve care for slaves to help buyers": A price ceiling reduces the revenue potential for sellers. Improving care for slaves would increase their costs, which is not in the interest of sellers under a price - control regime. So this option is incorrect.
3. For the option "More people would find careers in selling slaves": A price ceiling on slaves would reduce the potential profits in the slave - selling business. So it is unlikely that more people would be attracted to this career, and this option is incorrect.
4. For the option "There could have been a shortage of slaves on the market as a result of the price law": When a price ceiling (the Edict of Maximum Prices, in this case) is set below the equilibrium price, the quantity supplied (by slave sellers) will be less than the quantity demanded (by slave buyers). This imbalance in the market leads to a shortage of the good (slaves, in this case).

Answer:

D. There could have been a shortage of slaves on the market as a result of the price law.