If the Free- Market Equilibrium Price for Some Product Is

question 33

Multiple Choice

If the free- market equilibrium price for some product is $25,then a legal price ceiling set at $15 will bring about

• A)the same general effects as an equilibrium price of $15.
• B)no change in the market outcomes.
• C)the same general effects as a price ceiling of $25.
• D)a surplus of the good.
• E)a shortage of the good.

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Definitions:

Cost-Benefit Analysts

Professionals who assess the economic pros and cons of different projects or decisions to determine their financial viability.

Public Projects

Initiatives funded and executed by the government aimed at benefiting the general public, such as infrastructure development and educational programs.

Basic Research

Fundamental scientific research aimed at increasing the understanding of fundamental principles, without immediate commercial objectives.

Excludable

A characteristic of a good or service whereby it is possible to prevent non-payers from consuming it.