The Consumer's Gain from the Imposition of a Price Ceiling

question 23

Multiple Choice

The consumer's gain from the imposition of a price ceiling is higher when:

• A) the own price elasticity of market demand is high and the price elasticity of market supply is high.
• B) the own price elasticity of market demand is high and the price elasticity of market supply is low.
• C) the own price elasticity of market demand is low and the price elasticity of market supply is high.
• D) the own price elasticity of market demand is low and the price elasticity of market supply is low.

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Definitions:

Flexibility

The ability to adapt to new, different, or changing requirements and situations.

Prenatal Development

The process of growth and development within the womb from conception to birth.

Zygotic

Pertaining to a zygote, which is a fertilized egg cell that results from the union of a female gamete (ovum) and a male gamete (sperm).

Embryonic

Pertaining to an embryo, which is an early stage in the development of organisms, prior to birth or hatching.