If the Government Fixes the Price of Good X Above

question 14

Multiple Choice

If the government fixes the price of good X above its free- market equilibrium level,we should expect

• A)a shortage of good X to occur.
• B)a black market to arise for good X.
• C)a surplus of good X to occur.
• D)a new free- market equilibrium price to be established.
• E)an excess demand for good X.

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Definitions:

Adolescence

The transitional stage from childhood to adulthood, characterized by physical, psychological, and social changes.

Environmental Stability

The condition in which an ecosystem is capable of maintaining its structure and functional processes over time, despite disturbances.

Lifespan

The duration of time an organism is expected to live, influenced by genetic, environmental, and lifestyle factors.

Intellectual Changes

The transformations in cognitive abilities, including learning, reasoning, problem-solving, and creativity, that occur over a person's lifetime.