Which of the Following Statements About Price Ceilings Is False

question 91

Multiple Choice

Which of the following statements about price ceilings is false?

• A)Quality often suffers when a price ceiling is imposed.
• B)Rent control is an example of a price ceiling.
• C)Poor people will always be able to buy more of the product than if the price ceiling did not exist.
• D)Price ceilings result in shortages.
• E)Just as a producer is not allowed to sell a good for more than the price ceiling, it is illegal for a consumer to pay more than the price ceiling.

---

Definitions:

Pygmalion Effect

The situation that occurs when a managerial leader believes that a group member will succeed and communicates this belief without realizing it.

Live up to Expectations

The act of meeting or surpassing the anticipations, hopes, or standards set by oneself or others.

Higher-level Needs

Refers to the more abstract, psychological, and self-fulfillment needs that go beyond basic physical or material requirements, such as self-esteem and self-actualization.

Hands-on Guidance

Direct involvement and support in leading others or instructing how tasks should be performed, typically through practical demonstration.