If a Price Ceiling Is Set Above the Equilibrium Price

question 77

Multiple Choice

If a price ceiling is set above the equilibrium price, then

• A) there will be neither a shortage nor a surplus of the good.
• B) the price ceiling affects suppliers but not demanders.
• C) the price ceiling will generate revenue for the government.
• D) there will be a shortage of the good.
• E) there will be a surplus of the good.

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Definitions:

External Attributions

The process of inferring that a person's behavior is due to situational factors, rather than aspects of the individual themselves.

Environment

The surroundings or conditions in which a person, animal, or plant lives and operates, including both natural and built environments.

Attention

The act of concentrating or focusing mental resources on specific information, objects, or tasks, often selectively.

Attribution Theory

A social psychology theory that explains how individuals infer the causes of their own and others' behaviors and events, attributing them to either internal dispositions or external situations.