Refer to the Accompanying Figure,which Shows Both Short-Run and Long-Run

question 91

Multiple Choice

Refer to the accompanying figure,which shows both short-run and long-run demand and supply curves.If there is a $4 binding price ceiling imposed on a pharmaceutical drug,what will be the amount of the disequilibrium in the short run?

• A)There will be a shortage of 1,500,000 units.
• B)There will be a shortage of 800,000 units.
• C)There will not be a shortage; there will be a surplus.
• D)There will be a shortage of 2,000,000 units.
• E)There will be a shortage of 500,000 units.

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Definitions:

Causal Relationship

A causal relationship indicates a connection between two variables where changes in the value of one variable are known to cause changes in the value of another variable.

Demand Characteristics

Environmental cues in experiments that might influence participants' behavior or responses, potentially biasing the results.

College Students

Individuals enrolled in institutions of higher education, pursuing various degrees or certifications.

External Validity

The extent to which the results of a study can be generalized to other situations, people, settings, and times.