What Will Happen in a Market Where a Non-Binding Price

question 68

Multiple Choice

What will happen in a market where a non-binding price ceiling is removed?

• A) There will be downward pressure on the price in the legal market.
• B) The products sold will improve in quality and become more plentiful.
• C) Sellers will face a reduced incentive to sell the product.
• D) The price and quantity will not change in the legal market.
• E) There will be increased pressure to buy and sell the good on the black market.

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Definitions:

New Partner

An individual who joins an existing partnership, contributing capital, and sharing in profits, losses, and liabilities.

Unlimited Liability

A legal structure where a business owner or partners are personally responsible for the debts of the business.

General Partner

An owner of a partnership who has unlimited liability and is active in the management of the partnership.

Capital Balance

The amount of money that a partner has invested in a partnership minus any withdrawals or distributions.