When a Price Is Set by Law or Regulation Above

question 62

Multiple Choice

When a price is set by law or regulation above the equilibrium value,

• A) a shortage develops.
• B) it is called a price ceiling.
• C) the legal price is the maximum price allowable.
• D) it is called a price floor.
• E) quantity demanded exceeds quantity supplied.

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Definitions:

Poverty Rates

Measures the proportion of the population living below the poverty line, reflecting the general state of economic deprivation in a society.

Great Compression

A period in the mid-20th century where income inequality significantly decreased in the United States, largely due to governmental policies and economic shifts.

Income Inequality

Describes the uneven distribution of income and wealth across different groups in a population, often measured by metrics like the Gini coefficient.

Gilded Age

A period in the late 19th century in the United States characterized by rapid industrialization, economic growth, and the ostentatious wealth of a burgeoning class of industrialists and financiers.