If the Government Imposes a Price Ceiling That Is Above

question 123

Multiple Choice

If the government imposes a price ceiling that is above the equilibrium price,then the market will experience

• A) an equilibrium.
• B) a shortage.
• C) an excess supply.
• D) no scarcity.

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Definitions:

Federal Treasury

A government's department responsible for managing public revenue, including issuing currency, collecting taxes, and funding public services.

Permanent

Refers to accounts or records in the general ledger that are not closed at the end of the accounting period, such as assets, liabilities, and equity accounts.

Temporary

Not permanent; lasting for a limited period of time or intended for short-term use.